Trailing Spouse Programs

Secondary Wage Earner’s Income

Specific criteria has been established for when a portion of a secondary wage earner’s income “may” be considered as “anticipated” income. If one party is relocated, then the other party may be able to have part of his/her income still counted in qualifying for a new loan, even if a new job has not been obtained. “Trailing” wage earner’s income may be used only for relocations in which a documented corporate relocation program offered by the primary wage earner’s employer. This program should be considered only if all of the following conditions are satisfied:

  1. The mortgage is a fixed-rate purchase, first mortgage, secured by a one-family principal residence.
  2. The secondary wage earner is a spouse, domestic partner, or fiancÈe of the primary wage earner
  3. The secondary wage earner was employed as a salaried employee, or an hourly wage or commissioned employee in the same profession for the past two years. A written statement must be provided indicating his/her intention to obtain employment
  4. The borrowers have cash reserves (or other liquid assets) at closing equal to at least six months of payments for the mortgage and all other recurring debt obligations

Note: As long as the lender can document a “reasonable” employment market similar to his/her previous positions, a certain percentage of the secondary wage earner’s income from his/her previous employment may be used as “anticipated” income, to help qualify for a loan.