Can a married person buy a house alone? With low credit or high debt, it may be better to purchase a property on your own than with your spouse, even if you’re still married. It all boils down to whether or not you have a prenuptial agreement, your state’s regulations regarding community property, and the current status of your marriage.
You and your spouse both have the legal right to purchase real estate independently of ne another. It’s debatable whether or not your partner will be grateful if you do this, however. On the other hand, prenuptial agreements may enable couples to purchase and own separate property if the money used to purchase it is likewise individual property.
If you’re buying a property to live in together, there may be extra complications since it’s not just an investment.
It’s best to do it alone if your partner has bad credit or your spouse’s debt is excessive enough to preclude them from getting a mortgage.
Your prenuptial agreement should enable you to purchase a house without your spouse, so long as it’s an investment property and not a marital one.
Perhaps your situation is a bit more complicated and you’re wondering how to buy a house without your spouse knowing. Perhaps you’re on the brink of divorce and you’re wondering: can my husband buy a house without my consent? The truth is, yes, your spouse can purchase property without you and vice versa depending on the rules of your state. The best decisions are made, however, when you speak to your spouse before opting to buy a home with your own money since communication is crucial. A feeling of exclusion from both the decision-making process and ownership is the last thing you want from your partner.
Is Your State a Common Property State or a Common Law State?
Community property laws operate on the presumption that any property acquired during a marriage is owned jointly by both spouses. Therefore, if you and your spouse were to acquire a property right after your wedding, it is considered that both of you own the home as part of your community estate.
The nine community property states are: Wisconsin, Washington, Texas, New Mexico, Nevada, Louisiana, Idaho, California, and Arizona. Your mortgage lender will look at the debts of both spouses if you reside in one of these states and are applying for an FHA loan or VA loan.
States that do not have community property laws are known as “common law” states. This implies that if you purchase a home while married, you don’t have to split ownership with your spouse.
If you find yourself Googling, “can my husband buy a house without me,” you should know that buying a mortgage without your spouse is possible in a common-law state. When establishing your eligibility, your lender will be unable to take into account your spouse’s financial situation or credit history.
You may also just put your name in the title. After a divorce, you and your husband would not have to share the house; it would be yours all the way through.
Differences Between Title and Mortgage
It’s common to mention a property owner on both the title and the mortgage of the home. When a couple takes out a mortgage to buy a house, both partners usually sign the mortgage and the title. However, a scenario wherein only one spouse is on the mortgage but both are on the title is also possible.
Homeownership belongs to those whose names appear on the property’s title, but mortgage payments are made by those whose names appear on the mortgage. If the title or mortgage is transferred or there are co-signers, the names on both papers may not be the same.
Pros of Having a Spouse on a Title
“Title” is the legal term for the ownership of real estate. There is a deed to that title that includes with it the rights of exclusion, possession, disposition, and enjoyment. “Bundle of rights” is a typical term for this group of rights.
When you transfer a “bundle of rights” to another party, you transfer part of your legal ownership to them. Depending on where you live, you’d need a quitclaim deed or a special warranty deed to add a new owner to your title.
When you add your spouse’s name to the title of a home you previously owned separately, you’re establishing a tenancy by the entireties. Creditors can’t seize assets belonging to a married couple if one spouse owes them money.
When a couple has tenancy by the entireties, the property automatically passes to the surviving spouse in the event of the death of either party. There’s no need to create a new deed since the survivor already owns the property. You can understand that this is a great comfort to a spouse who has just lost their better half.
Cons of Having a Spouse on the Title
When you add your spouse to your home’s deed, they also legally become co-owners. You won’t be able to make major decisions on the home unless they agree. Your spouse would have to be on board if you wanted to sell the home, for example.
As long as the marriage remains blissful, this is seldom a problem. However, it may become an issue if the couple gets into an argument and eventually divorces. Dealing with a significant shared asset might be challenging in any instance, and you may be forced into doing something you don’t want to.
Your new spouse would have the legal right to transfer their portion of the property to another person, and this may not be the best option for you.
Pros of Having a Spouse on the Mortgage
If you find yourself asking: does my husband have to be on my mortgage? There are perks when you apply for a mortgage together as a married couple. First and foremost, if both partners work, your two earnings are taken into account.
As one of the most critical factors in evaluating both your eligibility and the conditions of your loan, the more income you can provide, the more advantageous it is. Improved terms, a higher loan amount, and the likelihood of approval await most married couples in good standing.
One of the “one spouse on the mortgage drawbacks” is that several financial institutions favor lending to couples. Even though it is never explicitly stated, some people believe that couples are more stable than singles. A married pair is more likely to battle to maintain their house than a single individual is.
You’re more likely to fail and start again if you’re single or enter refinancing with only one spouse. Both spouses are harmed when the home loan defaults, so lenders believe they are a safer bet.
Cons of Having a Spouse on the Mortgage
It goes without saying that unpaid taxes are a no-no. Banks often need two years of tax returns (or two years of W-2s), T4s (pay stubs), and two months’ worth of bank statements from those looking to get a mortgage. Leaving out your spouse from a mortgage might be an option if they don’t have the required paperwork.
Your debt-to-income ratio might be thrown off if they don’t have proof of income or if they have debt. This would prevent you from qualifying for a loan at all.
It would be best if you didn’t assume that the bank will use the highest credit score, lowest credit score, or even an average of your two credit scores. The bank will notice if your credit score is much lower than your spouse’s, which will affect you acquiring the best interest rate possible.
By removing their name from the mortgage, you may be eligible for more favorable terms, especially if they have a poor credit history. You may not qualify for these alternatives if their credit score is considered.
Considerations Before Purchasing a Home Without Your Spouse
Buying a home without a partner or spouse might be advantageous for various reasons, including those listed above.
If you are the house’s sole owner, it will be easier for you to leave the home to any children from your first marriage if you enter a second marriage.
If your spouse defaults on other obligations such as student loans or child support, you will want to safeguard your house from potential creditors. Creditors are unable to put liens on the property in an effort to reclaim payments if your spouse does not have legal title to the home.
It is not a reflection on the quality of your marriage if you decide to take your spouse off the mortgage or title to your home. In many situations, a married couple buying a house under one name might be the greatest choice for both of you to acquire the property you both desire. In addition, it could help you get the most favorable terms for your mortgage.
We strongly advise you to speak with a real estate attorney if you have any particular concerns about how this may affect your circumstances.
Either spouse may improve a poor credit score
by making on-time monthly bill payments. Review your credit reports and correct any inaccuracies you find (perhaps following up with a quick rescore), close any accounts in dispute, and maintain open any revolving credit accounts you have, but be sure to utilize them responsibly.