If this sounds like you, you are not alone. I recently worked with a client facing this situation.
She and her husband were separated in good conditions and she really wanted to buy him out and stay at home – not just for her own peace of mind, but for the minimization of disturbance to the child. But as we look at her numbers, it’s clear that she’s far from her qualifications to need a mortgage.
This is a difficult reality, but yes Options – They are worth exploring before throwing towels or turning to expensive private loans.
What happens when your income isn’t enough to refinance your mortgage?
Suppose you are trying to refinance your current mortgage to pay your spouse and take over all ownership rights. But the amount you need is on a court from $650,000 to $700,000.
If your income cannot support this debt on paper, there is a good chance that you will be approved by yourself. This means that the dream of staying at home may slip away.
Your idea might turn to asking your family to sign your new mortgage together, but assume that the idea hits the brick wall.
Don’t give up. If the separation is friendly – both parties are open to work together for a smoother transition – there are several creative ways to structure mortgages so you can able Keep the home and still get a reliable mortgage.
These solutions are tricky – the sooner you get expert advice, the better.
Can I add my ex-spouse to the mortgage even after we are separated?
Believe it or not, yes, this may be the bridge you want to have with financial possibilities. In this case, I usually see two methods.
Option A: Keep your ex as a guarantor in the mortgage
The guarantor is not on the title of the house, but only mortgages. So, even if you become the sole owner of the property, you both are responsible for the mortgage. If you make all the payments, then that’s OK. However, if you default, the lender will knock on the door Both Your door.
This can be difficult to sell with some lenders – many people are not satisfied with their ex-spouses who guarantee each other’s loan – but it’s not impossible. There are some lenders who will consider this setting, especially if your relationship is respectful and collaborative.
We know which lenders to approach and how to package such apps to give you the best shot. Let’s talk about your situation.
Option B: Add your ex as a co-signer with a small amount of ownership
This route is more lender-friendly. You both can be mortgaged and both are on the title, but through the attorney you can adjust ownership to your name 99% and 1% in their name.
Again, you will be responsible for the mortgage, but if you default, your EX is equally responsible. Yes, even if you are separated, lenders can accept this arrangement if it makes the mortgage work.
This is an option when someone simply can’t meet the criteria in any other way. It opens the door to standard quality mortgages with competitive interest rates instead of going directly to a private lender with a rental + rate of 6.99%, lender fees and additional closing costs.
What if I go to use a private lender alone?
If your ex won’t (or can’t) be part of the mortgage, then your only real choice may be a private mortgage. But, honestly, unless it’s just a short-term bridge, this is not ideal.
Private lenders charge significantly higher rates, usually starting at 6.99%, and then climbing from there. You will also receive lender and brokerage fees, which may increase your closing costs.
Private mortgage able Working in very specific situations (e.g., if you have clear, sometimes plans to increase your income or increase your reputation, but they are rarely a good long-term solution.
Bottom line
Putting a home in your home after separation is not just a number, but something about stability, continuity and conservation of what is built. However, if you don’t qualify, you don’t have to walk away or pay via private mortgage.
If your ex is willing to be a creative but fair mortgage setting (whether it is a guarantor or co-signer), you can keep the home, maintain control and still have a low competitive mortgage rate. It’s not always easy and requires careful planning, but it can definitely be done.
Do a separation and try to find out your mortgage choice? Your mortgage broker can help you run the numbers, explore lender-friendly strategies, and develop a plan that works for you and your future.
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Divorce Mortgage Strategy Mortgage Tips Ross Taylor Separate Spouse
Last modified: April 17, 2025
