If the homebuyer is separated from their spouse, should the spouse be included in the household size and income calculation?
Separated borrowers are not required to include their spouse’s income if the separation is legal or if they have been separated for 12 consecutive months or longer. Any financial support provided by the separated spouse to the homebuyer should be included as part of the homebuyer’s income. If the borrower is not legally separated and the separation has been less than 12 months, the spouse should be included in the household size and their income included in the household’s income. At the FHLBC’s discretion, exceptions may be granted based on individual circumstances, e.g. the spouse has moved to another country and is providing no financial support to the household.
