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If I qualify for the mortgage loan myself, is there any reason to include my spouse on there? Thanks.
No. If the spouses credit is strong then by all means. But if it's not, it can hurt your chances. We had to do it this way for an FHA streamline refinance. Key is both names are on the deed, but only one is on the note.
What state is the home located in? If you are in a community property state, and doing FHA/VA/USDA, your spouse's debts will be held against your income, so it might behoove you to add your spouse to the application if your spouse is earning income.
One drawback of not including on the note, the spouse will not be able to call the lender/servicer to get any assistance to answer questions. Since your name is only name on note, they will only discuss the loan with you.
I did this 10 years ago. I had no debt, and decent credit, and my husband had marginal credit and some debt. So I bought the house sole and separate. We added his name onto the deed afterwards. The only negative I have found is that by not having his name on the loan, his credit isn't helped by the years of on time payments. On the flip side of that, if we lost the house, his credit wouldn't take the hit, either.
The only other thing I can think of is if you were to ever split up, both spouses would have an ownership right in the house, but only the one with their name on the mortgage would be financially responsible. But presumably that would be dealt with in the divorce proceedings. I know, no one ever wants to think of that happening, but it is a potential negative.
Some loan types require both spouses to be on the loan, but if your lender doesn't require it, and you can qualify by yourself, AND if adding your spouse wouldn't get you a better interest rate, then go for it by yourself.
The only other thing I can think of is if you were to ever split up, both spouses would have an ownership right in the house, but only the one with their name on the mortgage would be financially responsible. But presumably that would be dealt with in the divorce proceedings. I know, no one ever wants to think of that happening, but it is a potential negative.
Easy fix for that. Just don't put the spouse on the deed. We purchased several houses with only me on the mortgage. Husband signed a quit claim before closing and had no ownership rights to the home. Nor was he legally obligated under the mortgage.
There are other methods of making sure that the other party (spouse) can keep the house if I get hit by a Mack Truck.
No way would I suggest putting another person's name on the deed unless they were ALSO on the mortgage. Spouse or anybody.
To piggyback off this thread, if a spouse is not on the mortgage but is on the deed, what happens if I die?
Does she have to get a new mortgage? What if she can make the payment but cant qualify for a mortgage or the rates are really bad?
I am in a situation right now where I qualify for a home purchase on my own and I am just a bit concerned what will happen to her (and the kids) if I die in this situation.
One advantage to only having one person on the mortgage is that if you lose your house, both of your credit isn't ruined.
You can then get a house (buy or rent) using the other persons information.
I see this as a big advantage and was part of my thinking. If I lose my job or something, late on payments, only I would take the credit hit.
Not having her on the mortgage would offer us some credit protection. We would also be able to use her name for any future purchases(ie investment property).
Thanks for the responses
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