Getting married is both an emotional and legal commitment between you and your spouse.
So by this assumption, it is normal and common to share in the ownership of your home together. On the other hand, it is also normal for a married couple to have separate properties and other assets.
When it comes to buying a house, though, this is an investment for you two. But what about the mortgage? Can a married person get a mortgage without their spouse?
This article will answer that question and provide more information on the pros and cons of this matter.
Can A Married Person Get A Mortgage Without Their Spouse
Yes, you can get a mortgage loan without including your spouse in it. Not including your spouse in your mortgage loan has both its benefits and its drawbacks.
If you’re married, your ability to buy a house without your spouse is determined by whether you live in a community property or a common-law state. What exactly are these two?
Mortgage in Community Property State
If you live in a community property state and want to exclude your spouse from the mortgage, you can do so.
However, this is not the case if you apply through the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). If you apply for an FHA or VA loan, the lender will have to consider your spouse’s debts when you apply.
If you live in a community property state and want to buy a house but leave your spouse off the title, you won’t be able to. If you buy a house while you’re still married, your spouse will own half of it.
Mortgage in Common-law State
In a common-law state, you are not required to share ownership of property acquired while married. You can apply for a mortgage without your spouse in a common-law state.
Your lender will be unable to consider your spouse’s financial situation or credit history when determining your eligibility. You can only have the title in your name.
If you and your partner divorce, the house would be yours alone; you would likely not have to split it with your spouse.
Benefits of Assuming Your Mortgage Loans Alone
Avoid Credit Problems
Unfortunately, mortgage firms will not use the highest credit score between the two of you or even the average of your scores. They will prioritize the lowest credit score.
So, if your spouse’s credit score prevents you from obtaining the best potential rates, you might consider leaving your spouse out of the mortgage. That is unless you want your spouse’s income to qualify for a respectable loan amount.
You Preserve Property In a Divorce Or If your Spouse Have Debt Problems
In some situations, your home can be seized or confiscated. For example, if your spouse defaults on student loans, unpaid taxes or child support, or unpaid judgments, they may be subject to being seized.
By purchasing a home in your name alone, you secure your ownership from creditors. Similarly, in a divorce, if the mortgage is named after you and you are paying for it, that will be yours when properties are split.
On the other hand, there is a major disadvantage to being alone in your mortgage loans. Let’s explore this below.
Disadvantages of Assuming Your Mortgage Loans Alone
Only One Income Is Considered
The main disadvantage of a married couple buying a house under one name is that their income is usually not counted on the application. That could have a significant impact on the amount you can borrow.
Simply put, higher-income allows you to afford a larger monthly mortgage payment. That raises the maximum loan amount.
As a result, couples applying for a mortgage together may frequently afford larger and more expensive homes than single applicants. This also means a higher Debt-to-Income ratio.