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’re navigating a divorce with a mortgage, one of the first questions that comes up is: If my ex keeps the house, can I still qualify for a new mortgage? The good news is yes — you can often remove that old mortgage from your debt-to-income ratio (DTI) — but you’ll need the right paperwork in place.

Here’s what lenders generally require:

1. A divorce decree or court order clearly stating your ex-spouse is solely responsible for the mortgage payments
2. Proof of property transfer, usually a quitclaim deed or similar document, showing the home was legally transferred to your ex

Here’s how each loan type handles it:

• Fannie Mae (Conventional): Will allow you to omit the mortgage from your DTI if your ex is legally responsible and the home was transferred.
• Freddie Mac (Conventional): Similar guidelines — requires documentation showing you’re no longer financially responsible.
• FHA: Allows you to exclude the debt if your divorce papers assign it to your ex and you’re not making payments.
• USDA: Permits exclusion with the proper legal documentation and proof of non-payment.
• VA: Lets you omit the debt if your ex is solely responsible and you’ve signed over your ownership.

With those two items in hand, most lenders will feel comfortable leaving the old mortgage out of your DTI, helping you qualify for your next loan without that liability hindering you.

Have questions about how your divorce could impact your next mortgage? Our experienced loan officers are here to help you navigate the process with clarity and confidence. Contact us today to schedule a conversation.