If you live in California, your spouse signs the QCD enabling you to process a mortgage.
Some states don't require a QCD. They may require a warranty deed and the spouse to sign the settlement statement and another doc or two.
This happens a lot of times IF the non borrowing spouse has bad credit and cannot be on the loan for one reason or another.
I had one where the spouse owed back payments for child support from a previous marriage.
The child support payments killed the debt ratio and couldn't qualify for the loan.
Tax liens, bad credit, Bankruptcy or short-sale seasoning requirements, too much debt, wage garnishments etc are other reason that would prevent a spouse from being on a mortgage.
NOTE: Fannie Mae and Freddie Mac look at a short-sale JUST LIKE a foreclosure!!
Fannie/ Freddie require 7 yr seasoning. FHA requires three years seasoning from the date of the disposition. NOT the commencement of the foreclosure process.
You only have to put the people that qualify for the loan on title/deed/ deed of trust. Use me as an example: my wife is a stay at home mom. If I were to buy a home they would only use my financials. At that point we would have the option for just me to be on title or my wife and I.... more