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Nadine Cius

CDPE, CMRS, ePRO®, SFR, SMP, TAHS
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Nadine Cius's Blog

This Blog will answer questions regarding real estate and mortgage financing. One question will be selected from the most frequently asked questions of the week regarding real estate and mortgage financing.

Can You get a Home Loan Without Your Spouse?


September 1st, 2009

Can you get a home loan without your spouse? You can purchase a home and be the only person financially obligated. Your name can be the only person on the  loan.  However in Texas, your spouse will still be required to sign the security instrument at closing because Texas is a community property state.   The non-purchasing spouse will have to sign the Deed of Trust at closing no matter what type of financing you're getting (conventional, VA, FHA or USDA).

Moreover, if you are getting a FHA loan, FHA will  require that the non-purchasing spouse go through a credit check even though your spouse isn't co-signing or co-borrowing.     FHA loan guidelines state that the bad credit reports on the non-purchasing spouse can’t be used to deny an FHA mortgage to the borrower, but the credit check is nonetheless required.  This is done to make sure that the non-purchasing spouse does not have any debts or liens that would affect title.  In addition, it is done to protect FHA's first lien position and to make sure that there are no bad government debts.  Government  loan defaults & Tax liens are the main causes for concerns.  Consequently, all parties to the transaction, including the non-purchasing spouse must be checked against the FHA LDP (Limited Denial of Participation) and GSA (Government Services Administration) lists for eligibility.  These government lists hold information concerning parties who have been denied participation in FHA’s insurance programs or other government contracts or programs because of wrongdoing.
 
If the non-purchasing spouse appears on the LDP/GSA lists, the loan application is not eligible for FHA insurance and the loan must be denied, unless the person being reported can pay off  the delinquency or make satisfactory repayment arrangement with the agency reporting the default. 

Lastly,  keep in mind that even if your spouse is not financially obligated for the home, because Texas is a community property state they may still have rights to the property.


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