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My ex-spouse got our home in the divorce, but my name is still on the mortgage, do I have to factor that housing expense in my debt ratio when going to buy another home?

If you were a co-borrower who is now divorced and your ex-spouse got the home in the divorce settlement, you should be able to omit that debt when going to apply for a future home mortgage loan.

To have one spouse’s name on a mortgage after a divorce, your ex-spouse will need to refinance. This is because even if you’re able to omit the debt from your credit profile, you will still be on the hook if your ex-spouse starts missing payments and/or goes into foreclosure on the home.

While both conventional and unconventional mortgage products allow you to omit this debt, you will inevitably need official documentation of this agreement in your divorce settlement.

Under Fannie Mae and Freddie Mac conventional loans, FHA, USDA and VA loans, the debt can be omitted with a court order or divorce decree stating your ex-spouse is responsible for the payment and proof that a quit claim deed has been recorded, transferring sole possession to the responsible party.

To learn more about specific mortgage requirements, contact one of our experienced loan officers.

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