I posted this earlier in the wrong thread. I apologize.

My wife applied for a mortgage. My name is not on the loan. She made an offer on a house which was accepted. Everything was in order and closing was supposed to take place next week. Then she gets a letter saying that the underwriter wants copies of our Social Security Award letters since we are both disabled and receive Social Security Disability. We had the letters faxed to the underwriter, but he rejected them on the basis that the words "Permanently Disabled" is not stated. Social Security said they do not give that info. Then the underwriter said he wanted Social Security to state that we will continue to receive benefits 3 years from now. SS says they cannot guarantee future benefits for anyone. Now my wife cannot get the loan.

Since I am not applying for the loan, is it normal for underwriters to request all this extra info about the non applying spouse?

BTW, social security disability benefits is my wife's sole income. Her credit is excellent.

Now days, yes. Some programs require all household income to be examined. Recently, RD changed their guidelines so that married couples could not buy "sole and seperate."

In the past, I have had to provide the doctors findings to prove that social security disability was likely to continue for at least 3 years.

I don't know if you're applying at a bank or mortgage brokerage.
Banks don't have the flexibility to move a loan to a different lender if you cant satisfy the underwriter.

[quote=IPP]Now days, yes. Some programs require all household income to be examined. Recently, RD changed their guidelines so that married couples could not buy "sole and seperate."

In the past, I have had to provide the doctors findings to prove that social security disability was likely to continue for at least 3 years.

I don't know if you're applying at a bank or mortgage brokerage.
Banks don't have the flexibility to move a loan to a different lender if you cant satisfy the underwriter. [/quote]

Thanks for your reply. We are not applying at a bank and our mortgage consultant is sending us an application with a different lender. The frustrating part was that social security kept saying they cannot give the info that the lender requested. Our doctor said its not her responsibility to state that we are permanently disabled but that it was the SS office's job to make that determination. So around and around we go.

I responded to your original post, so I will copy the response here:

If you plan on having your income considered for repayment of the loan, then the underwriter can request information regarding your income. You're asking them to risk their money on you. They have every right to be assured you and your wife will uphold your end of the bargain.

When my wife and I purchased our home, we had trouble securing financing since I was in commissioned sales. Most underwriters have certain requirements for handling certain streams of income.

I'm just surprised that it took so far into the process before this became an issue for the underwriter. Your mortgage broker probably should have known that this might be problematic when your loan went to underwriting.

*Speaking from personal experience, not as legal advice.*

[quote=jbsnadb]I responded to your original post, so I will copy the response here:

If you plan on having your income considered for repayment of the loan, then the underwriter can request information regarding your income. You're asking them to risk their money on you. They have every right to be assured you and your wife will uphold your end of the bargain.

When my wife and I purchased our home, we had trouble securing financing since I was in commissioned sales. Most underwriters have certain requirements for handling certain streams of income.

I'm just surprised that it took so far into the process before this became an issue for the underwriter. Your mortgage broker probably should have known that this might be problematic when your loan went to underwriting.

*Speaking from personal experience, not as legal advice.* [/quote]


Thanks for responding. No, I never intended for my income to be considered on my wife's mortgage loan application. This is something the underwriter chose to do. I never signed anything giving anyone release of personal/medical information. Yet the underwriter wants doctors to write up letters concerning my medical info.