Hello,

I am a US citizen residing in Cyprus and married to an EU citizen. I wish to purchase a second home in Arizona and have been prequalified for an amount of only $120,000 (this is with the consideration of my $30,000 down payment) because my household income cannot be considered as my husband is not a US citizen. I am preparing for the preapproval process and want to ensure that I put myself in the best possible position without of course, violating any tax laws, loan fraud, etc.

This has been quite complicated given my non-resident status. The latest question I have is whether it would facilitate my preapproval to stop paying on my husband's mortgage here in Cyprus. This would allow me more disposable income shown in my accounts and will show that I have no other major payment obligations. Could someone please share some insight as to whether I should stop making payments (which go first into a joint checking account shared with my husband and then onto a mortgage in his name) on the Cyprus mortgage until I get preapproved for my US mortgage?

Btw, my husband can cover this expense himself it is no problem.

Many thanks in advance for your help.

Since you are a US citizen living and working abroad, you will need to purchase this home as a secondary or vacation home with a international borrower loan. Typically these loans require a larger down payment and have a higher interest rate and points associated. These loans are non conforming and are considered portfolio loans (privately funded mortgages). Since the lender dictates the terms of qualifying, you may have to provide documentation of credit references, income, and assets. If you are not obligated to repay the debt on the Cyprus property, I would use only your husband's income for this debt. This will free up your income and you should be able to qualify to purchase the Arizona home by yourself.