Home Buying in Phoenix>Question Details

machr030, Home Owner in Phoenix, AZ

How can a married couple refinance their home in Arizona when only one qualifies for a loan? Would a quit claim be an option?

Asked by machr030, Phoenix, AZ Sat Nov 17, 2012

My husband has a judgement and I only qualify for an FHA refinance. We really need to refinance in order to lower our payments. Need help, what are our options?

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Answers

7
Hi Machr030:

For an FHA refinance in Arizona, a Community Property state, you can qualify on your own, although your husband's credit will have to be pulled. The purpose of the credit report is to verify any debts owed by the Community (you and your spouse). The debt payments wil be counted in calculating your debt ratios, but your spouse's derogatory credit will not disqualify you.

This is how one lender describes it: "Non purchasing spouse credit reminder: A credit report is required on a non-purchasing spouse in a community property state. Although the non-purchasing spouse's credit history is not to be considered a reason for denial, it must be obtained in order to determine the debt-to-income ratio of the borrower."

Keep in mind, the judgment might still be an issue if the judgment is of a nature which could "cloud" the title to the home, in which case it would have to be paid off.

Give me a call or email me and we can discuss this further and move forward on getting you refinanced.

Bill Parker, Loan Officer
AZ Lic# 09011570
NMLS #223607
CPA--Licensed, no longer practicing

GenCor Mortgage Inc.
15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
(O) 480-525-8496; (M) 602-565-3646; (F) TBD
EM: BParker@GenCorMortgage.com
Website: http://www.GenCorMortgage.com
LinkedIn: http://www.linkedin.com/in/billparkercpa

MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter
1 vote Thank Flag Link Sat Nov 17, 2012
Marhr030,

I currently have a client with a similar situation. Here is how it can be resolved: First, you will want to quit claim the deed into your name and have your husband sign a "disclaimer deed" which will release all ownership interests to you. Arizona is a community property state with married couples. Then, you will be able to refinance the loan solely in your name. After the refinance you can always quit claim the deed back into both names. I hope this helps!!

Please let me know if I can be of any additional assistance with your real estate needs.

Sincerely,


Sean Heideman, Broker / Owner
Position Realty
Office: 480-213-5251
0 votes Thank Flag Link Sun Nov 18, 2012
Options exist as has been shared, have you spoken to your current lender about this situation?
0 votes Thank Flag Link Sun Nov 18, 2012
Definitely speak to a lender. They will still have to pull your husband's credit but if the debt to income numbers still work when calculating you and your husband's debt, it is definitely worth it with the low rates that are available. Remember that they will factor you and your husband's debt to qualify for the loan even though you will be the only one on the loan.
Here is a great lender that could help you out:
Ryan Gilliam - Senior Mortgage Banker - (480) 635-3035
Waterstone Mortage Corporation
NMLS#332576
0 votes Thank Flag Link Sat Nov 17, 2012
Get in touch with a good lender. They will be able to help you and explain what needs to be done. Many times they can do the loan under your name and have the spouse with credit issues not put on the loan. They will need to look at his credit report though to see debts.
0 votes Thank Flag Link Sat Nov 17, 2012
This will depend on whose names are on the loan. You will certainly want to talk to a lender! I have several lenders that I have worked with over the years and they would give you sound recommendations.
0 votes Thank Flag Link Sat Nov 17, 2012
I work with a great loan officer who can answer this question over the phone. Tell him Donna Leeds with Keller Williams referred you. Chris Arbuckle with Amerifirst Financial-480-688-6812 or carbuckle@amerifirst.us.
Donna Leeds
Realtor-Keller Williams Realty Sonoran Living
949-310-5673
0 votes Thank Flag Link Sat Nov 17, 2012
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