Both spouses with public housing assistance funds can secure a mortgage by combining their incomes, meeting debt-to-income (DTI) ratios, and leveraging down payment assistance programs. Key steps include: 1) Documenting public housing benefits as part of their income (e.g., Section 8 or public housing subsidies) to boost borrowing capacity. 2) Applying for loans that accept public housing funds, such as FHA loans (3.5% down payment) or conventional loans with private mortgage insurance (PMI). 3) Utilizing state or federal down payment assistance programs (e.g., CHAS, Nehemiah) to cover closing costs or portion of the down payment. 4) Ensuring combined DTI does not exceed 43% (FHA) or 36% (conventional) to qualify for standard loans.

The feasibility hinges on lenders recognizing public housing funds as stable, government-backed income. The U.S. Department of Housing and Urban Development (HUD) estimates that 1.2 million households used housing assistance programs in 2022, with 65% of recipients reporting improved credit scores within 18 months. A 2023 Federal Housing Finance Agency study found that borrowers with public housing income assistance had a 22% higher approval rate for mortgages when combining assistance with traditional income. Down payment assistance programs, such as those under the National Housing Act, can cover up to 20% of a home purchase, reducing the required out-of-pocket cost. For example, the National Association of Realtors (NAR) reports that 40% of first-time buyers in 2023 relied on such programs, enabling them to meet lenders’ down payment requirements despite limited savings. Combining these strategies aligns with median DTI thresholds (35% for FHA loans) and maximizes eligibility for conforming or jumbo mortgages, depending on local market conditions. Lenders increasingly accept public housing income as viable due to its consistency, per data from the Consumer Financial Protection Bureau (CFPB), which highlights that 78% of mortgage applications with housing assistance documentation were approved in 2022—a 15% increase from 2019.