Financing in Allen>Question Details

Brian, Other/Just Looking in Dallas, TX

My wife and I bought a house almost 3 years ago, At that time, we did the loan in her name and the tittle was in her name only. I signed it Pro Forma

Asked by Brian, Dallas, TX Wed Dec 9, 2009

to perfect the lien. I want to refinance and take over the loan and only be responsible for the loan. She can be on the tittle but not on the loan. Can that be done?

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Your signature was on the Deed of Trust to allow the bank to foreclose your homestead in case she did not pay the note as she promised.
Now you would be in the opposite situation where she would sign the Deed of Trust so that the new bank could foreclose you if you did not pay.
Who is in title in Texas is unimportant since both husband and wife have equal claim under community property rules, regardless of whose name is on title and who officially is responsible to pay the note. Note that her debt is also yours, even after divorce. A consent decree can assign responsibility for payment but does not release the other person shown on a note. Only a release will do that, normally part of the re-financing process.
Will a lender let you get the loan based solely on your income and so "in your name"? Yes, if you qualify. Note that most lenders will pull the credit of the spouse, even when they are not on the note, because the spouse's debts can influence the ability to pay back the loan. FHA actually requires the spouse's credit to be pulled and it cannot be vastly different from the one applying. But, you must be in title to mortgage the property.

Since you were not on the title, you will actually be conveying the property from her alone to you and her together in the re-finance transaction, plus releasing the old note. No, she cannot be on the title alone without being responsible for repayment and have someone else sign the note alone. The property is collateral -- it is pledged by the owner in case of non-payment. She couldn't pledge (mortgage) it unless she signed the note. Another person (you) can promise to repay, but the property needs to be mortgaged by the person in title.

Saying all that, it is conceivable to get a signature loan or loan based on some other asset by you and use the proceeds of that loan to pay off her current note. For example, you might take out a loan from your annuities or 401(k) or against an unmortgaged property you own, and use that money.

Your lender can explain this all to you, and a conversation with your attorney is recommended, since it is not clear what your objective is in doing so. They can advise you.
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0 votes Thank Flag Link Thu Dec 10, 2009
As long as you've been on title for 12 months, you'll have to refinance the loan in your name only and remove her. She will need to quit claim the title to you and then add her back. An appraisal will need to be done and income and asset information will be disclosed.
0 votes Thank Flag Link Thu Dec 10, 2009
The answer is - Yes, with qualifications. Lending rules have changed dramatically in the last year. 2009 was definitely a year of changes in the industry. A spouse is not required to be on a home loan and still retain rights of title in Texas. I suggest you contact a very good Texas-based lender and discuss your options. Right now, you can ask for a Good Faith Estimate from any of the lenders you are considering for a refinance. After January 1, 2010, there is a new form for Good Faith Estimates. It is available now, and you should ask the lender to go ahead and explain it to you. It makes full disclosure by the lenders a little more apples-to-apples and explains fees that are fixed and fees that are adjustable (within tolerances). We agents are just being introduced to this form ourselves.

If I may, I recommend you contact Rodney Anderson Lending Services, A Division of Supreme Lending. Rodney is a top mortgage broker in Texas and offices locally in Plano. He has been a trusted advisor on all things loan-related to me for over 7 years, after a strong recommendation from a client. You can reach Rodney and his team of associates at 1-800-express, or 972-985-5208, or online at You can see Rodney on tv on shows like Good Morning Texas and MSNBC. And, you can tune in, and call in, to the local radio show. He's on 105.3fm each Saturday morning at 9am. Ask your question on the air and help many others with similar questions who may also want to hear the answer.

Have a blessed day!

Ronda Allen, Realtor and Certified Purchasing Manager
RE/MAX Dallas Suburbs
CEO of
0 votes Thank Flag Link Thu Dec 10, 2009
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