Getting A Loan While Still On The Marital Home Mortgage

marital home

Question:

My wife and I are creating a separation agreement and have some questions regarding how to handle the marital home.

The mortgage of the marital home is in my name. My wife would like to remain in the home and continue paying the mortgage so I will be renting it to her.

I’ve found a condo I would like to move into but am not sure if I will qualify for another loan. What kind of proof do I need to show that I’m renting the house so that I would qualify? Would the notarized separation agreement be sufficient?

Answer:

I do not practice law in your state. Therefore, I cannot inform you as to the specific laws of your state and can only provide you with general tips on your situation.

The housing crisis resulted in the federal government instituting much stricter requirements that lenders must follow before they can approve loans. On top of the federal requirements, individual lenders may have adopted additional institutional lending policies.

The best way to determine whether you could qualify for a loan while still on the mortgage to the marital home, and what type of proof of renting would need to be provided, is for you to speak with the lender directly.

Wisconsin divorce lawyer Anne Scipior
Wisconsin divorce lawyer Anne Scipior

In Wisconsin, where I practice law, lenders have refused to approve new loans for clients who remain on a mortgage for a marital home, even if their ex-spouse is court ordered to be responsible for the mortgage payment, unless the client has a high enough income to show clearly that he could afford to pay both mortgages should the ex-spouse default on the home mortgage payment.

Because most people are not in this financial position, if one spouse wants to remain in a marital residence, we typically require that the spouse refinance the mortgage into her own name. If she’s unable to do this in a specified amount of time, the house must be listed for sale.

Again, the lender you intend to work with can describe their policies to you.

Remember, I am unable to provide you with anything more than tips on your situation, so please consult a domestic litigation attorney in your area to obtain specific advice as to the laws in your state and how they impact your potential case.

To arrange an initial consultation to discuss divorce rights for men with a Cordell & Cordell attorney, including Wisconsin divorce lawyer Anne Scipior, contact Cordell & Cordell.

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Shawn Garrison is an Online Editor for Lexicon, focusing on subjects related to the legal services of customers, Cordell & Cordell and Cordell & Cordell UK. He has written countless pieces dealing with the unique child custody and divorce issues that men and fathers face. Through his work on CordellCordell.com, CordellCordell.co.uk, and DadsDivorce.com, Mr. Garrison has become an authority on the complexities of the legal experience and was a content creator for the YouTube series “Dad’s Divorce Live” and additional videos on both the Dad’s Divorce and Cordell & Cordell YouTube channels. Mr. Garrison has managed the sites of these customers, and fostered the creation of several of their features, including the Cordell & Cordell attorney and office pages, the Dad’s Divorce Newsletter, and the Cordell & Cordell newsletter.

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