What is required when considering non-purchasing spouse's obligations?

When considering a non-purchasing spouse's obligations in the context of USDA Rural Housing Loans, it is crucial to include those obligations in the Debt-to-Income (DTI) calculation. This is because lenders must assess the total financial situation of the borrowers, which encompasses all significant debts and obligations, regardless of whether the spouse will be on the loan.

The DTI ratio helps lenders determine the borrower's ability to repay the loan by comparing their monthly debt payments to their monthly gross income. If the spouse has significant debts—such as student loans, credit cards, or other loans—these should be calculated into the DTI, as they ultimately impact the household’s financial capability to manage additional mortgage payments. Even if the spouse is not listed on the loan application, their financial obligations can still affect the overall financial profile that the lender reviews.

Focusing solely on the borrower’s income without considering the non-purchasing spouse's obligations would provide an incomplete picture of the household's financial health. Hence, including these figures in the DTI calculation is essential for a comprehensive evaluation of the borrower's financial situation.