Financing in 95020>Question Details

Homeowner, Both Buyer and Seller in 95020

My huband is not on our home loan, but he is on title. How will that impact his ability to qualify for another morgage in just his name?

Asked by Homeowner, 95020 Fri Jul 16, 2010

We are looking at purchasing a second home and would like to have the loan just in my husband's name. We are wondering if having him on the title of our first home would have any impact on his qualifing for a home mortgage.

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This is a good question and I'd have to refer you to a good mortgage broker for a complete answer. Call Ted Oberson of Evernote Bank, 408.910.4833.


Debby Bright
Real Estate Broker
CA DRE #00957311
408.309.0777
0 votes Thank Flag Link Wed Jul 3, 2013
In addition to the other answers you'll need to consider this:
If you plan to keep your present home while attempting to buy another - you will need to qualify for both house payments (and no credit for rent income on your present home); and you will need to have 3-6 month's PITI for both homes in savings. If you can qualify under these conditions your rate could be higher due to risk-based pricing for FNMA or FHLMC pools.
Feel free to e-mail or call me for additional information.
Mike Walters
Web Reference: http://CaHomes411.com
0 votes Thank Flag Link Fri Jul 16, 2010
This is called the marriage penalty! It would work if you were not married but every lender requires both husband and wife to sign. Good luck!
0 votes Thank Flag Link Fri Jul 16, 2010
"Even if he is not on the loan lenders will not to know the main payment of your current home to correctly ascertain the Debt to income ratio."

Yes they will because they will ask for the credit report of the non-purchasing spouse and it will be on there. Even if they are not using their credit or income, the credit report will be pulled for the exact reason of ascertaining debt.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Jul 16, 2010
I would also look at CA specific answers because lending is a state specific process
0 votes Thank Flag Link Fri Jul 16, 2010
No it's the current mortgage payment that makes a difference. Even if he is not on the loan lenders will not to know the main payment of your current home to correctly ascertain the Debt to income ratio.

Lenders are very sensitive to this aspect of the financing and if you do not disclose the mortgage payment of the other home, and the pull a search with his name on title of your current home it can cause issues with you closing your loan.
0 votes Thank Flag Link Fri Jul 16, 2010
If you are truly looking at this as a second home, it would have to qualify as such. Assuming it does, him being on title to the first home would only affect the purchase in that he may need to qualify for both principal, interest, tax and insurance payments as your debt (the mortgage) will be considered his debt. If his income is enough to support this by himself, then there is no issue. If you have an income it would be in your best interest to also be on the new mortgage because then your income will help qualify and offset the debt. See a loan officer and have them show you the numbers and available options.

Gregorio Denny
Tripoint Mortgage Group, inc.
800-335-6897
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Jul 16, 2010
In MN they look at both of you as a single entity, a married couple, and no matter who name it is in your assets and liabilites are counted together.
0 votes Thank Flag Link Fri Jul 16, 2010
It may depend on the type of loan and property being purchased. In the name of full disclosure he may not be on the loan but in a community property state like California he may still have an obligation to the debt? It is still a family obligation and should be listed as an asset with a debt.
0 votes Thank Flag Link Fri Jul 16, 2010
That one is best left up to the loan experts. Contact a lender you trust and discuss. Also, you may want to talk with your tax accountant about this.
0 votes Thank Flag Link Fri Jul 16, 2010
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