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.
Quick answer
Saxton Mortgage does. On an FHA loan, if you live in or are buying in a community property state, your spouse’s debts must be counted in your qualifying ratios unless state law excludes them, but your spouse’s credit history is not a reason to deny the application.
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
Your spouse’s credit score is not used
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. If you and a partner are buying together but are not married, a joint VA loan is the structure that covers it.
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.
Saxton Mortgage does. On an FHA loan, if you live in or are buying in a community property state, your spouse’s debts must be counted in your qualifying ratios unless state law excludes them, but your spouse’s credit history is not a reason to deny the application.
Yes, a married borrower can buy alone, and FHA states that in community property states your spouse is not required to be a borrower or co-signer. The mortgage must still be signed by anyone state law requires to make the lien valid and enforceable. We then qualify the loan on your own income, credit and assets.
No, under FHA rules a non-borrowing spouse’s credit history is not a reason to deny your mortgage application. A VA program we use likewise ignores the spouse’s credit score*. Fannie Mae, on files underwritten by hand instead of DU, does review an authorized user account that your spouse owns.
Yes, on an FHA loan your spouse’s debts go into your DTI when you live in a community property state or the home is located in one, unless state law excludes them. The lender pulls a credit report on your spouse to find those debts. Ask your loan officer whether your state follows community property rules before you apply.
Your spouse may need to sign the mortgage or deed of trust even when they are not a borrower. Fannie Mae requires that signature when state law needs it to waive property rights your spouse holds through the marriage. FHA likewise has a non-borrowing spouse sign the security instrument, or a document giving up rights to the home, when that is needed for a valid first lien.
Yes, FHA counts a non-borrowing spouse’s collection accounts in a community property state toward its $2,000 cumulative collection balance. Judgments against that spouse must be resolved or paid in full unless state law excludes them. Disputed derogatory accounts of the spouse are left out when FHA decides whether a file is downgraded to a Refer.
Yes, a joint account shared with your spouse can count toward a purchase you make alone under several lender guides. One accepts it with a relationship letter, plus an affidavit on bank statement loans so the spouse’s deposits are not counted as your income*. Another program’s access-letter rule for joint owners does not apply when the other owner is your spouse*. Learn more about bank statement loan.
Yes, one conforming lender’s rules let a non-borrowing spouse be added to the title and deed of trust when you document the relationship, such as a license or utility bill showing the same address*. Fannie Mae requires everyone with an ownership interest to sign the security instrument, even if their income is not used. On one VA program, the veteran’s spouse is the only non-borrower allowed on title*.
Yes, and it is routine. Only one of you has to be on the loan, and it is common for the spouse with the stronger credit and income to apply alone. Two things still follow you: your spouse may have to sign some of the closing documents, and in a community property state their debts can be counted even though they are not a borrower.
The score itself is not used, because a non-borrowing spouse is not a borrower and their score does not enter the qualifying decision. Their debts are a separate question: in a community property state those can still count against the debt ratio even when the score does not. That is the catch worth understanding before you decide who applies.
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.