Buying or Refinancing Without Your Spouse
One of you has the credit and income. The other has the collections. Leaving a spouse off the loan is routine, and in eight states it comes with a catch.
A spouse can be left off the loan
Off the note is not the same as out of the file.
- A married borrower can apply alone. Nothing in these guidelines requires both spouses to be on the loan.
- In a community property state, the non-borrowing spouse’s debts generally must be counted in your qualifying ratios, unless state law excludes them.
- On government loans in community property states, a credit report for the non-purchasing spouse is typically ordered even though they are not applying.
- One guideline states plainly that the non-borrowing spouse’s credit history is not a reason to deny the application.
- Your spouse may still need to sign the security instrument, not the note, to waive property rights under state law.
- A joint account you hold with a non-borrowing spouse can generally be used for down payment, closing costs, and reserves with a relationship letter.
One borrower qualifies
Joint accounts still usable
Spouse credit not disqualifying
Government and conventional
Signature requirements handled
Purchase or refinance
Why Community Property States Change The Math
This is the fork in the road, and it depends on where you live as much as where you are buying.
In a community property state, the rule across government programs is that the non-borrowing spouse’s debt must be included in your qualifying ratios unless it is excluded by state law, and where a debt is excluded the file has to cite the specific statute. VA guidance is blunter still: the spouse’s debts and obligations must be considered even if the veteran wishes to obtain the loan in his or her name only. Note that this can follow you. At least one program applies the rule if the borrower currently resides in a community property state, regardless of where the new home is.
What does not follow you is your spouse’s credit score. The rule is about debts, not about credit quality. One guideline says it outright: the non-borrowing spouse’s credit history is not a reason to deny the loan application. So a spouse with a low score but few obligations may barely affect the file, while a spouse with an excellent score and a large car payment can reduce your borrowing capacity.
Outside community property states, the picture is usually simpler. The spouse’s debts are generally not counted, their credit is generally not pulled, and the main remaining question is whether state law requires their signature to convey clear title.
What your spouse may still have to do
Six things that come up even when only one of you is on the loan.
Sign The Security Instrument
Guidelines distinguish between the note and the deed of trust. A non-borrowing spouse is generally not asked to sign the promissory note, but may be required to sign the security instrument to waive property rights. Title requirements vary, so the title company usually drives this.
Sign In A Homestead State
Where homestead rights apply, all owners and their spouses may need to consent to the transaction. On a Texas home equity transaction, a non-borrower spouse has the right to cancel regardless of ownership interest.
Have Their Credit Pulled Anyway
In community property states, government programs typically require a credit report on the non-purchasing spouse. It is used to identify debts, not to score them as a borrower.
Sign A Spousal Consent On Entity Loans
Where a loan is signed with a personal guaranty in a community property state and the spouse is not on the loan, a consent of spouse form is generally required at closing, dated the same day as the note.
Provide A Relationship Letter For Joint Funds
Money in an account you hold jointly with a non-borrowing spouse is usable for down payment, closing costs and reserves with an executed relationship letter. On bank statement income files, an affidavit is also required so their deposits are not counted as your income.
Sign The Closing Disclosure On A Refinance
At least one guideline requires the initial and final closing disclosure to be signed and dated by the non-borrowing spouse on refinance transactions.
Hear From Homeowners Like You
Frequently Asked Questions
Questions about leaving a spouse off the loan.
Yes. Applying alone while married is routine. What changes by state is whether your spouse’s debts count toward your ratios and whether their signature is needed to convey clear title.
It should not. One guideline states directly that the non-borrowing spouse’s credit history is not a reason to deny the application. What can affect you in a community property state is their debt, which may be counted in your ratios.
Community property states. One document in our guidelines enumerates Alaska, Arizona, Idaho, Louisiana, New Mexico, Texas, Washington and Wisconsin in the context of spousal consent. Every other reference just says community property state without listing them, so we confirm your specific state before relying on any list.
Possibly. The distinction guidelines draw is that a non-borrowing spouse signs the security instrument, not the note, where state law requires it to waive property rights. Your title company determines the exact requirement.
It can. At least one program applies the debt-counting rule if the borrower currently resides in a community property state, regardless of where the new property is located.
Yes. Non-borrowing spousal accounts are allowed for down payment, closing costs and reserves with a fully executed relationship letter. On a bank statement loan you will also need an affidavit confirming your spouse’s deposits are not being counted as your income.
That is a legal and title question rather than a loan question, and it depends on your state and your intentions. We can tell you what the loan requires; how you hold title is worth a conversation with an attorney.
Find out what you qualify for
If one of you has the stronger file, applying alone is often the right answer. Tell us which state you live in and which state you are buying in, and we will tell you whether your spouse’s debts come along for the ride and what they will need to sign.
Get Pre-QualifiedRequirements for non-borrowing spouses, including debt inclusion, credit report requirements and signature requirements, vary by loan program, investor and state law, and are subject to change. Community property rules differ by state. Saxton Mortgage does not provide legal advice regarding title, marital property rights or homestead. Not all applicants will qualify. This is not a commitment to lend.