How can I stay in the Marital Home?
- Refinance the current balance into one parties Name
- Use other assets to pay off the balance, ie. investments, savings, retirement
- Structure support to ensure the payor or payee can support the mortgage payment.
How is Alimony and Child Support Treated for Mortgage Purposes?
- 6 months with a conventional loan
- 3 months with VA loan
- 12 months with USDA
- 3 months with FHA loan
- It is going to continue for a minimum of the next 3 years after the closing date.
- It is documented with a divorce decree, separation agreement, court ordered or other legal written document is in place.
- Voluntary payments are not acceptable
- Proof of receipt is required, by way of cancelled checks or bank statements
What About Our Second Home and/or Investment Properties?
- Second homes can be treated much the same as teh marital home, or the family may choose to sell the second home and split the proceeds of remaing debt.
- Investment properties may also need to be refinanced, this can be complex if the parties have claimed rental income in the pas filing jointly. Speaking with a professional is imperative if income producing properties are owned jointly.
How Does a Cash-Out Refinance Work?
Cash-out refinances are frequently utilized to settle the marital estate. The equity in the home is taken out through a new mortgage and the difference between the current mortgage balance and the new loan is then paid in cash to the borrower. The maximum loan amout is 80% of the appraised value of the home, so if the current mortgage is $50,000 and the home appraised for $100,000 the borrower would be able to receive $30,000 in a Cash-out refinance.
