In a community property state, what must be included in the applicant’s qualifying ratio?

In a community property state, both spouses are generally considered to own debts incurred during the marriage, regardless of who is the primary borrower. This means that when determining an applicant's qualifying ratio for a USDA Rural Housing Loan, all debts, including those of a non-purchasing spouse, must be included. This inclusive approach reflects the legal framework governing community property, which equates marital property and financial obligations shared between spouses. Therefore, the debts of a non-purchasing spouse significantly impact the overall financial assessment of the applicant's ability to repay the loan, as lenders evaluate the total financial obligations from both parties to ensure that the borrower can manage the mortgage payments alongside existing debts.