A question recently came up that I am curious how others answer it when it comes to credit applications.

If only one spouse is applying for credit but that person is not on the home loan note, what is the proper way to answer the house payment question if only their individual income is considered?

Most applications I have seen allow the applicant to list other available/accessible income (ex. spousal income deposited into the same account), so in that scenario I think the appropriate answer is to list the full monthly house payment amount.

What would be the best answer if the person not on the home loan is applying for a personal line of credit in just their name and the lender only want that person's individual income listed and not accessible/available income?

I am not sure what the best answer is. Technically, it is $0 since they have no legal obligation on the note, but half may be the reasonable compromise answer. Either may throw flags if the lender has access to what was listed as the full house payment on other applications.

Interesting question. I am curious to see how others would answer.

I think you use only the income of those on the loan.
That's all the bank cares about, who's on the hook to pay.

quote:

Technically, it is $0 since they have no legal obligation on the note, but half may be the reasonable compromise answer.

But they are not asking you for a reasonable compromise, they are asking a specific technical question.

If you do not have a mortgage with your name on it, your mortgage obligation is $0. If you're paying for part of it, and they ask you about rent, you can put your contribution there.

My wife says that you either include total household income and expense (both incomes and house payment) or that you exclude the other income, and home payment of 0, but that many banks (hers included) would need a letter of explanation for the lack of housing expense.

Many "non-borrowing" or "non-owning" partners are still paying expenses "rent" that should be accounted for. The banks know this, and will usually ask how you have it figured out for your situation.