Divorce & Mortgage: Can I Buy if I'm Still on the Mortgage?

Welcome to Cross Country Mortgage with Jeff McGinnis, your trusted source for all things mortgage-related. In this video series, we're here to provide valuable insights into the mortgage industry and how it directly impacts your profession in family law. Whether you're a seasoned family law attorney or just looking for essential mortgage information to help your clients, you're in the right place.

In today's episode, we tackle a common challenge faced by family law attorneys. Picture a scenario where a departing spouse claims they can't secure a new mortgage because they're still tied to the existing mortgage with their former partner, who will remain in the family home. Both individuals are high earners, and they can certainly qualify for a mortgage individually, but it's the burden of two mortgages that's causing the issue.

This might sound like lender jargon, but I'll break it down for you. We're dealing with the equivalent of using different rulebooks for the same game. Imagine football; it's played at the high school, college, and professional levels, but the rules vary. Similarly, the rules for mortgage financing differ depending on the loan type and lender.

Now, here's the key solution. Fannie Mae, Freddie Mac, and government loans like FHA and VA explicitly state that if there's a divorce decree that absolves the departing spouse from the responsibility of the mortgage payment and a quitclaim deed is in place, their departing residence's mortgage payment won't affect their debt-to-income ratio.

However, some large banks may follow their own rulebook, which doesn't allow for this. The answer is to explore alternative options with a mortgage professional who has access to various programs. At Cross Country Mortgage, we offer over 60 different loan programs that could be tailored to fit your needs.

If you, or someone you know, is in a similar situation, don't hesitate to reach out. I'm here to help and guide you through this process. You can find my contact information in the video description below, including my phone number, email, and calendly link.

Feel free to share this video with your clients to provide them with a better understanding of our services and how we can work together to find solutions. Your success is our priority, and we look forward to assisting you with your unique mortgage needs. Stay tuned for more informative content, and let's connect soon!
00:00 Introduction
00:32 Departing Spouse Scenario
01:15 Perspective for Departing Spouse
02:03 Potential Solutions: Decree & Quit Claim Deed
02:53 Contact Jeff for consults or expert witness work 206-283-5626