Section 1.12. Applicant and income limitations.

 

(1)   Number of applicants. The department will not accept more than 2 applicants for any department loan and will not accept more than 2 signers as makers on credit instruments to be executed in connection with such loans. Guarantors will not be accepted by the department for the purpose of making housing loan applications creditworthy.

(2)   Inclusion of income. A person's income shall not be deemed to be available as regular and dependable for the purposes of s. 45.31 (10) , Stats., unless such person is the veteran applicant or is a co-applicant who is either residing with the veteran applicant or who will jointly own and occupy the homestead to be purchased or constructed by the veteran applicant with the assistance of a department loan.

(3)   Co-applicants. Subject to the provisions of subs. (1) and (2) , the department shall consider the income, assets and debts of any applicant who is willing to sign all required credit instruments to be executed in connection with the loan for which application has been made and upon whom a complete application has been submitted to the department for the purposes of ss. 45.31 (10) and 45.40 , Stats., for the purpose of determining the creditworthiness of the application and for the purpose of determining its compliance with the provisions of s. 45.33 (2) (a) 1. , Stats. An application must always be completed on the veteran applicant.

(4)  Notwithstanding the provisions of subs. (1) to (3) , if a veteran applicant is married and not separated or in the process of obtaining a divorce, such applicant's spouse shall be a co-applicant for any department loan and must complete and sign the loan application and all credit instruments required to be executed in conjunction with the loan. If a veteran applicant is separated or in the process of obtaining a divorce, such veteran's spouse shall not be required to be a co-applicant for loan under subch. III of ch. 45 , Stats., and such spouse's income, assets and debts shall not be considered by the department. In order to be considered "separated" for the purposes of this subsection, a veteran and spouse must either be legally separated or must have been living in different dwellings for at least 3 months immediately next preceding the veteran's application for a loan. In order to be considered in the process of obtaining a divorce for the purposes of this subsection, a petition for a divorce of the veteran and spouse must have been filed with a court.

History: Cr. Register, October, 1976, No. 250 , eff. 11-1-76; r. (4), Register, December, 1979, No. 288 , eff. 1-1-80; cr. (4), Register, February, 1981, No. 302 , eff. 3-1-81; correction in (3) made under s. 13.93 (2m) (b) 7., Stats., Register, April, 1986, No. 364 ; r. (5), Register, July, 1998, No. 511 , eff. 8-1-98; corrections in (2) to (4) made under s. 13.93 (2m) (b) 7., Stats., Register, July, 2000, No. 535 ; correction in (3) made under s. 13.93 (2m) (b) 7., Stats., Register, June, 2001, No. 546 .