Mortgage Advisors For Married Applicants
Getting the right advice before applying for a mortgage is very important. This is especially true if youre married but want to get a mortgage in one name.
Our advisors specialise in mortgage applications that arent straightforward. Being married and applying for a mortgage as a sole applicant is considered to be a complex case. As a result, its certainly where the expertise of our advisors can help.
Make an enquiry to get started and an advisor will call you straight back. Alternatively, you can call us on 0800 195 0490 for further help.
Reasons To Put Only One Spouse’s Name On The Title
- To keep the property away from creditors: As an example, If one spouse has defaulted on debts and itâs possible creditors could try to seize that spouseâs property as payment, buying a house under the other spouseâs name could help protect it from those creditors.
- Youâre using pre-marriage money: If youâre a house with money that you earned entirely before you got married, buying the house under just one name is one way to make sure only you own that home. This strategy could be especially important for couples in community property states.â
- You and your spouse have different heirs: In general, ownership of a married coupleâs house will pass to the surviving spouse when one spouse dies. The surviving spouse can then decide who receives the property when they die . If you want to guarantee that your chosen heirs will receive the property, and especially if they are different than what your spouse would have wanted, then having the house under one name may be a good idea. This can be helpful to people who have a blended family and are considering adding their spouse from remarriage to the deed.
Looking to buy a house? Orchard can help simplify the process, especially if you need to sell and buy at the same time. Get started.
What Happens If You Split Up After Getting A Single Mortgage When Married
Wondering whether your partner would have any rights to the property if you got a single mortgage and then split later down the line? Itâs a good question, and exactly why many mortgage lenders wonât want to give you a single mortgage if youâre married.
Technically, the property will be yours â only your name will be on the Title deeds and only youâll be responsible for paying the mortgage. However, in practice, your ex could still have a legal right to carry on living in the home, regardless of whether theyâre a legal owner.
Plus, there are laws in place that mean your home has to be divided fairly if you split with your spouse. Exactly how much goes to each person will depend on things like how long youâve been married, whether there are any children involved and how much your ex contributed to things like household bills.
Ultimately, things get even more complicated if your ex gifted you money towards the deposit or gave you money towards the mortgage repayments, as youâll need to prove these contributions were a straightforward gift with no strings attached.
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Can I Apply For A Mortgage Without My Spouse
We often get asked: Can I apply for a mortgage without my spouse? The short answer is yes. Sometimes a married home buyer may want only to have their name on the mortgage. Applying for a mortgage without a spouse is perfectly acceptable and could be a better option for some buyers. Lets answer some FAQs.
To Save Money On Mortgage Interest
In addition to our credit score tip, you can also save money on interest rates if the spouse with a better credit score is the one named on the mortgage. See, your mortgage rate is partly dependent on your credit score. The higher the score, the better a rate you can get. So by leaving the spouse with the low credit score out of the mix, you can possibly get a better rate.
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Apply For A Mortgage Without Your Spouse
The good news, fortunately, is that just because your name is the only one on the mortgage loan, it doesn’t mean both you and your spouse can’t be listed as the owners of the home. You can still put your spouse’s name on the home’s title even if only your name is on the loan.
You may be wondering, can one person get a mortgage? Can you even buy a home on your own?
A spouse who applies for a mortgage on their own needs enough individual income to qualify for the monthly payment on their own. The lender counts only your income, not your spouse’s when determining your ability to repay. Since your spouse’s income is excluded from the “ability-to-repay” calculation, and any debt-to-income ratio calculation, you are likely to need a fairly strong income and low debts to qualify individually.
I Declared Bankruptcy Not My Wife Can We Still Get A Mortgage Loan
The short answer is yes. The other spouse would be the only one on the loan. So if newlyweds want a new house but the young husband had financial problems after college, the new wife will be the borrower. This of course means the wife’s income is the only one accounted for in the application.
With that in mind, it’s helpful to understand information about bankruptcy and short sales in your past when it comes to getting a mortgage loan in the future. A recent short sale will keep you from getting a mortgage for about 3-to-4 years. We’ve talked about this before. Here’s an excerpt from that article:
The mortgage banking business is based on the reliability of borrowers to pay back the mortgage notes on their homes. In other words, if you can’t pay your bills, you won’t be able to find financing to buy a house. Low credit scores are one measure of a person’s likelihood of paying back a debt. Recent financial hardships are another. If you recently went through a short-sale, you will fall into these categories. A financial institution will not lend money to a potential borrower who, at this point, is having financial trouble .
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Does My Husband Have To Be On The Mortgage
No, he doesnt.
There are generally two reasons why a couple would want only one of their names on the mortgage.
Overall, the type of loan you are looking for will determine what is needed. If one spouse does not have these , it may be wise to leave them off the application.
If Your Spouse Has A Lot Of Debt
If your spouse has a lot of debt, this can also affect your ability to get approved for a loan. That’s because lenders take your debt-to-income ratio into account. This means they look at your total debt, relative to your total income, in order to determine how much to lend and what rate to offer you.
Ideally, your debt-to-income ratio will be 36% or lower to get the most competitive rates. That includes all debt including your new monthly housing payment after you get your mortgage. Unfortunately, if your spouse owes a lot of money, it could lead to a higher ratio that affects your ability to borrow — especially if they have a low income or no income at all.
You’ll need to consider how much your partner earns, relative to their debt, to decide if it makes sense not to include them as a co-borrower. If they have large loan payments but make a lot of money, then it may still be beneficial to include them — but look at your debt-to-income ratio both independently and together when deciding what’s likely to lead to your best chance of loan approval.
Recommended Reading: How To Qualify For A Second Mortgage
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Why Do I Need A Bigger Deposit
One of the biggest roadblocks to getting a mortgage with a spouse who has bad credit is not the poor credit itself but rather the deposit.
As a minimum, youll require at least 10%-20% of the purchase price as a deposit.
The bigger the deposit you can come up with, the stronger your chances at approval.
If youre borrowing more than 80% of the property value, youre required to pay a .
So, if you can save a 20% deposit, you save on the cost of the LMI.
Read Also: How Much Is Mortgage Origination Fee
Should Both Spouses Be On A Home Equity Line Of Credit
Taking out a home equity line of credit instead of a home equity loan may be preferable if you want to have access to a revolving credit line rather than a lump sum. If you want to share financial responsibility for the HELOC with your spouse, it makes sense for both of you to be listed on the loan application. As with home equity loans, lenders will consider the credit histories, incomes, and debts of both spouses when making approval decisions.
Tax And Legal Issues With Buying A Home Before Marriage
Married couples usually have a tax advantage over unmarried couples when it comes to home ownership. The easiest way to address most of these issues is to put everything in writing if you decide to purchase the property together. However, if you’re already set on tying a knot, keep in mind that your home isn’t the only thing about your finances that you’ll need to address.
Mortgage Interest Deduction
Individuals or married couples filing separately may also gain additional tax benefits if their total deductions exceed the standard deduction. Due to recent changes in the tax law, the mortgage interest deduction for singles and married couples filing jointly is limited to $750,000 in mortgage debt, while married couples filing taxes separately can claim up to $375,000 in mortgage interest deductions each.
This can be an issue if you’re buying a property with your partner and intend to split the costs of the home evenly. If you were to deduct the mortgage interest on a property in a high-cost area as an unmarried couple, you would be required to file individual tax returns. The IRS only permits one homeowner to claim the deduction on mortgage interest, so only one of you would be able to benefit from the deduction on the full $750,000 the other would not be able to deduct anything.
Standard vs Itemized Deduction
| Individuals | |
|---|---|
| $250,000 | $500,000 |
Capital Gains on Sale of Property
Property Upkeep and Splitting the Costs
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How Do I Qualify
The first thing you want to do is to find out exactly what caused your partners bad credit by looking into their
You can do this by requesting a free annual copy of both your credit report from or Experian or Dun and Bradstreet.
This will give you an overview of both your credit history and help you identify any potential credit issues. You can also use our to help you work out potential red flags.
Incorrect information on your credit file can be fixed by contacting the credit reporting body, while defaults even if paid will stay on your credit file for up to 5 years.
Alternatively, you can contact our specialist mortgage brokers who can look up your credit file, identify all the credit issues the banks may object on and carry out a full assessment to figure out which lenders will accept your situation.
This way you avoid adding any more on your credit file further decreasing your credit score.
Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or fill in our to find out if you qualify.
If Your Partner Has Debt
If your spouse has considerable debt, applying for a home loan alone may make sense.
When you apply together, the lender will consider your combined total monthly debt obligations, which also includes repayment on the current loan application. If this exceeds 40 per cent of your combined gross income, your application may be rejected or you may not receive favourable mortgage terms, such as lower interest rates.
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Can A Married Person Buy A House Alone Contact The Larson Law Office To Learn More
Making the decision to purchase a house requires a lot of consideration. We can help ensure that you know exactly what you are getting into and that youre protecting yourself in case of a future divorce.
At The Larson Law Office, we pride ourselves on offering realistic, thorough, and honest assessments of our clients circumstances. We will be there every step of the way to answer your questions and advise you on legal issues. With many years of experience, we are confident we have what it takes to help you with whatever you need.
Contact our team today for a free consultation to see how we can help.
Is It Even Worthwhile To Apply For A Home Loan In Texas Without Your Spouse
After you and I have gone over all of this information, the question may have entered your mind as to whether or not it even pays to apply for a home mortgage using only your information. After all, if your spouse’s credit report, debt to income ratio, and payments history become relevant, wouldn’t it make sense to always include them in the application from the beginning?
I would point out that even though their credit history is relevant and their credit report will be reviewed, your spouse’s credit score may not be as crucial to whether or not you all will be loaned money to purchase a new home. Lenders will typically not deny you a mortgage if your spouse has a low credit score. So, if you apply for a home mortgage in Texas by yourself, your spouse’s credit score is typically not at issue. Using together, however, means that both of your credit scores will be reviewed.
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Your Mortgage Company May Look At Your Spouses Debt
When your mortgage company approves you for a loan, they look at your debt-to-income ratio, which is the percentage of your gross income that goes toward debt. Your DTI can have a huge impact on your home loan.
If one spouse has a lot of debt, you might consider leaving them off the mortgage to decrease your DTI ratio. However, if the home is in a community property state and youre getting a FHA or VA loan, both spouses debts will be taken into consideration.
So, what is a community property state? In a community property state, all assets and all debt belong to both spouses. There are currently nine community property states in the U.S.:
If you live in one of these states and youre getting an FHA or VA loan, your mortgage company will look at the debts of both spouses. If you dont live in a community property state, then you live in a common-law state, and have more flexibility with your property ownership.
Applying With Your Spouse
Your mortgage lender bases affordability on your combined incomes.
So applying for a mortgage with your spouse could help you qualify for a bigger mortgage amount.
In most cases:
Your mortgage payment cannot exceed 28 percent to 31 percent of your gross monthly income.
Lets say you apply for a mortgage alone and you earn $60,000 a year, or approximately $5,000 a month.
Your mortgage payment cannot exceed $1,550
In such a scenario, you can afford to spend up to $305,000 on a home. This is assuming a 30-year fixed-rate mortgage with an interest rate of 4.5%.
Now lets say your spouse earns $35,000 a year, resulting in a combined yearly income of $95,000 or $7,900 a month.
Applying for a mortgage with your spouse now qualifies you for a mortgage payment up to $2,400 a month, or a home purchase up to $475,000.
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Home Maintenance Tips For Winter
Sure, spring cleaning sounds great. However, in reality, tackling a long home maintenance checklist all at once can be overwhelming. Rather than letting it all add up, what if you tackled home maintenance a little each season? Here are some ideas for taking care of your home during the winter months.
Buying A House Without My Spouse: Your Questions Answered
Whether you want to leave your spouse off the mortgage for a particular reason or you want to buy your own home outright, theres merit to pursuing homeownership as a solo buyer. Depending on your personal situation, only having one spouse on the mortgage may be the best option.
Learn more about what that process looks like and why you may want to consider it before diving into home ownership as a couple.
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