John C., Home Seller in Las Vegas, NV

How can I put both my wife and my name on the Title if only one of us will be on the loan (but the other puts the down payment)?

Asked by John C., Las Vegas, NV Wed Jul 27, 2011

Hi,

My wife and I are trying to buy a home worth about 1.1M. Since her credit is better than mine, we have decided to split our responsibility where I give the down payment (400K), and she gets on the loan (700K - she can qualify by herself). We want both of our names to be put on the Title.

(1) Is this possible?
(2) Should the purchase contract have both of our names on it?
(3) Will the lender have problems with this arrangement?

What are some of the other things to watch out for?

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4
Rudi Hofmann, Mortgage Broker Or Lender, El Segundo, CA
Thu Jul 28, 2011
John,

I have originated many loans as this. I suggest you DO NOT say the $400K was a gift. A letter stating your wife has total access to the account would be much better. Since the loan will be in her name, your name Cannot appear on the Purchase Agreement. You can be on Title. You may want to consider if liquidating $400K for a down payment is a smart move. On my website I have a page devoted to Pledged Assets. This might be something you may wish to explore with a Nevada Mortgage Professional. If the property is in California, please contact me.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
1 vote
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Thu Jul 28, 2011
#1 - yes it is possible, one spouse can give the other spouse the down payment, it'd be documented as a gift (so you should talk to your tax advisor about any gift tax implications)
#2 - whether you are buying in California or Nevada, even if the non-borrowing spouse is not on the purchase agreement, they are fine to be added to title upon the loan closing. Your lender & the escrow company both need to be aware that is what you want to do or they will not draw up the closing documents correctly.
#3 - relates to my answer to your first question, yes it's possible as long as your wife can qualify on her own.

However if you are planning on financing over $625,500 on a 1-unit property you need to get your plan together ASAP, as the conforming loan limits* in San Mateo County are dropping from $729,750 down to $625,500 here at the end of September - so if you are aiming at using conforming financing you need to have closed on your home by then if you want to talk advantage of conforming loan programs & their interest rates. Otherwise everything over the $625,500 loan limit will be non-conforming, or straight "jumbo" loan programs, which have slightly different credit requirements and not as as attractive rates (not a ton higher, but but not as low).

* The conforming loan limits are $417,000 across the U.S., but in high cost areas the conforming loan limit exceeds that amount, all the way up to $729,750 in the highest cost areas of the U.S, per the Economic Stimulus Act in 2008. However it is currently scheduled that the end of the fiscal year (September 30th) will mark a reduction in those limits to no higher than $625,500 in the highest cost areas.

If you need help figuring anything out, have more questions, or need more information feel free to ask and I'd be happy to help.
1 vote
Margaret Has…, Agent, Tampa, FL
Wed Jul 27, 2011
You can ask the title agency or law office where you plan to close escrow how they want it done.
0 votes
Richard Colt…, Agent, Shrewsbury, PA
Wed Jul 27, 2011
John,

You may be able to, after closing on the property, have your name added to the deed and then record the new deed. I suggest you check with an attorney in your state to see if this can be done.
0 votes
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