Refinance....Is this true?

[MSSANDRA]

So my DN owns her own home, bought it herself and only her name on the deed. Her fiance also owns his own home. They are getting married in two weeks. She goes in today to see about refinancing her current load as she will be keeping and renting her home. They tell her that if she is legally married, that her husbands name must be on the refinancing. To me that is crazy. He does not own the home and his name will not be added once they are married. Is this true? I told her I would call our financial adviser or our lawyer Monday to clarify but I just had a hard time believing this. We are in NC if that matters. They have their own reasons for not making these homes joint property and whether I agree or not has nothing to do with what the law says. Anyone know for sure what the law is?

 

[kathie859]

Two thoughts:

1) If NC is a dower rights state, a spouse must sign off on the paperwork involved in a real estate transaction. This does not mean any name must be added to the deed.

2) If the lender knows this is being converted to a rental property, a higher interest rate could apply. Rental property mortgage rates are higher due to the increased default risk.

 

[It'sWDW4me]

Is she planning on using his income to help qualify for the mortgage?

 

[Kingdome8]

Why is she doing refi? Lower term, or cash out?

I've never heard of anyone being required to add someone just because there married.


So unless NC has different rules, she's probably being required to add him be cause she needs him to qualify. Just a guess of course.

 

[MSSANDRA]

She just got a great interest rate. She does not need his money to qualify or make the payments. She makes a lot more now than when she took out the loan on her own, seven years ago. The marriage really has little to do with her refinancing. I did not know that rates are different if you plan to rent, thanks! I am not sure if she told them that. We have rental properties as well, but we do not have a mortgage on them so have not done this. We also do not have joint names on all of our properties sooooooo. Thanks for all the thoughts. NC is a dower state so she may have to add his name to the loan. not a big deal but it may just affect the amount of a line of business credit they may want in the near future.

 

[Jenn]

I'm in Georgia and we have good friends that bought the house next door to us last week. She is the only one on the mortgage and deed. He is in the process of opening a business and had no income, and she is employed full time, so it was cleaner for the bank to do it that way.

 

[Kellydelly]

That is a good question. When my husband and I got our first mortgage we were both on it, but I was not on the deed (go figure). We did not use my income to qualify for the mortgage.

 

[MomofDisneyLoversx3]

I would check with a real estate lawyer. I live in PA. The state requires both names on a deed if you are married married but not on the mortgage. It really just depends.

 

[MSSANDRA]

Thanks everyone. I have a lawyer and will call him Monday morning. It was just going to bug me all week-end.

 

[Manda513]

We just bought a home in Nov, our second. With house #1 we finalized the purchase prior to getting married (2 days before!) and only his name was on both, but they stated if we waited then I would have to be listed on title. Second and most recent house loan went on his name but title had to list both. We are in KY.

 

[mistysue]

I am in Michigan. I was single when I bought the house, his name is even now on the deed, but I refinanced a few weeks ago and his name is NOT on the new mortgage.
Even though the loan is not in his name, they required our bank statements for a few months back which involved verifying all of his income and he did have to sign off acknowledging that I was getting the mortgage. He had three jobs last fall so the verification of his income got really tricky but they needed proof of the source of every single deposit into our account.
Then when they were calculating our amount to bring to closing, any amounts we had deposited for nearly 5 months that weren't listed on a paystub were deducted from our balance limiting what we were allowed to bring as down payment. I am only bothering to mention all of these details because they were nothing like that critical when I got the house 9 years ago, I got the impression they were digging more not from new regulations but because there was a second income in the house.

 

[Mickfarland4]

I am the only one on my loan, but, DH is on the deed. That info is incorrect. I was the only one with decent credit and we did not use his income.

 

[asoko]

There are different documents to a mortgage. When they say refinance papers they mean he probably has to sign the mortgage ( deed of trust). This subordinates his rights as her husband to the lien. He would not have to be on the note which is the promise to repay and his income,credit and. Individual assets would not be used.

If she didn't qualify on her own she may be told another signer would help but it is her decision whom the other person is.

 

[StitchesGr8Fan]

Simple answer - depends on the state.

 

[tink_n_pooh]

This is true in NJ. depends on the state

 

[HayGan]

I would check with a real estate lawyer. I live in PA. The state requires both names on a deed if you are married married but not on the mortgage. It really just depends.

That's false. I live in PA. My house and my mortgage are both in my name only. My ex was never listed on either even though we were married at the time of the purchase.

 

[RitaE]

Dower/Curtesy laws may be coming into play. Also, some states (mainly Community Property States) have regulations concerning debts which are occurred during a marriage.

http://www.nolo.com/legal-encyclopedia/debt-marriage-owe-spouse-debts-29572.html

 

[clh2]

About 23 years ago - I purchased a home before I was married. We refinanced this home a short time after we got married - and it was important for me to have DH's name on the deed and the mortgage. It was a royal pain in the patooty to get that done - in the state of Illinois. Cost a lot more to - because a lawyer needed to get involved. DH's money was not needed - as my income was more than sufficient to handle the refi.

We now live in a community property state - so while I'm not sure if a spouse "has" to be on the mortgage or on the deed - they still own half the house, and they own half the debt.

 

[mrsbornkuntry]

I am in NC and Dh and I just bought a house a year ago. I am on the deed, but I am not on the mortgage.

 

[ZoeBell]

We live in NYS. We were both on the deed and the mortgage when we bought originally. When we refinanced, even though I did all the work with the new bank, my name was left off the mortgage.