New Mortgage.
Keeping the house, funding a buyout, or buying your next home? Let’s talk through the financing before you commit.
Start with a conversation.
I’m Dawn Robbins. I can help you compare a refinance, a new purchase loan, or a second mortgage for a buyout. We will look at your income, assets, credit, equity, and the timing of your agreement to identify options that may fit your situation.
Bring your questions, even if you are early in the process. We can talk through your plans before a lender credit pull. Your attorney handles the legal agreement; I help you understand the mortgage requirements and financing implications.
What could your next step look like?
Buy out your spouse.
If you are buying out your spouse and keeping the property, let’s start with your current mortgage. If you have a rate worth keeping, I want to explore ways to preserve it first. We can review whether an assumption or another lender-approved option could work, how to fund the buyout, and what is needed to release the other borrower from responsibility.
Refinance.
If keeping or assuming the current loan is not an option, we can look at refinancing into your name only. That may also provide funds for the buyout, depending on your equity and qualification. We will compare the new payment, closing costs, and timing so you know what keeping the home would actually cost.
HELOC.
Another option may be to keep the current first mortgage and use a home equity line of credit to provide the buyout funds. This could preserve your first mortgage’s rate, but it adds a separate payment, and HELOC rates are often variable. A HELOC does not remove your spouse from the existing mortgage. We need to review qualification, the existing loan responsibility, and your agreement with your attorney before moving forward.
Sell before you buy.
You may be able to make your next purchase contingent on the sale of your current home. That means the purchase depends on your sale moving forward under the agreed terms. With a willing seller and careful coordination, the closings may line up so you can avoid a temporary rental. Your agent can assess what sellers will accept in your local market; I can help with financing and timing. Have a backup plan for delays.
Divorce and buy at the same time.
Your divorce does not always have to be finalized before you buy a new home. It can take extra coordination among you, your attorney, and the lender to document the settlement, responsibility for the current home and debts, and any support income or payments. Let’s review those pieces early so you understand what needs to happen before closing.
A new purchase for both of you.
Sometimes a fresh start means a new home for each of you. If you both want help, I can discuss each person’s financing options and coordinate timing where appropriate. Each application is evaluated separately, and each person’s financial information stays private unless they authorize it to be shared. Understanding both plans can help you see whether the proposed sale or buyout leaves room for everyone’s next step.
How to qualify.
This is my area of expertise. Whatever your situation looks like, I can help you understand the mortgage requirements, explore available options, and build a plan. Sometimes the next step is immediate; sometimes there is work to do first. You do not have to figure it all out on your own.
Start by getting a copy of your credit reports.
The official source for free credit reports is AnnualCreditReport.com. I also like services such as myFICO and Credit Karma. These services use soft credit checks, which do not affect your credit scores or count as hard inquiries for new credit. Some services or features may have a fee, and the scores you see may differ from the scores a mortgage lender uses.
Review all three credit reports for balances, late payments, collections, and unfamiliar accounts. For joint obligations, verify payments directly with the creditor where you are authorized. Do not assume a divorce decree prevents late payments from affecting your credit.
Some lenders, including me, offer a soft credit pull as part of the mortgage loan application process. If you are applying to refinance to remove the other party from the loan, or planning to apply to buy another home once your name is removed from the joint property’s mortgage, I can help you work through that process. A conversation about your options does not require a lender credit pull. Any lender credit pull requires a permissible purpose, your authorization, and compliance with our application procedures.
Avoid unnecessary hard inquiries while you are working through these decisions. Wait until you are ready to take action, and ask what type of credit pull is required before authorizing it. Hard inquiries can affect your scores, and multiple applications for different types of credit can add up. A mortgage application may eventually require a hard inquiry.
You do not have to figure this out on your own. Let’s have a conversation first, talk through your scenario, and see what options may be available. Call me at 503-805-7878.
Qualification starts before the settlement is finished.
Bring income documentation, tax returns when applicable, bank statements, debt statements, and the proposed or signed settlement. Support you receive may need a documented history and sufficient remaining duration; support you pay may affect qualification.
As one program example, Fannie Mae generally requires six months of full, regular support receipts and at least three years of expected continuation when using that income. Other programs differ. You do not have to disclose alimony or child support unless you want it considered as qualifying income.
The three years remaining rule is a big gotcha.
There is no single support term that fits every divorce. Five years, a fixed shorter term, or another arrangement depends on the agreement, the court, and state law. But the length matters if you need that income to qualify for a mortgage.
For a Fannie Mae loan using support income, the lender generally needs at least six months of full, regular, timely receipts and documented continuation for at least three years from the application date. These are two separate tests. Other programs can have different requirements.
Before agreeing to a support term, ask your attorney and mortgage professional whether enough documented income will remain at the expected loan closing. Ask your attorney and mortgage professional to coordinate the start date, receipt history, end date, and expected closing. Plan a cushion beyond the minimum so a delayed closing does not derail qualification. A longer documented remaining term gives more room, when appropriate for your legal and financial situation.
Payments during the divorce may help establish history.
I have seen documented, consistent payments received while the divorce is in process help establish payment history. Ask the lender whether the payments and governing temporary order or separation agreement meet its requirements and whether the final terms support continued receipt. An informal promise or voluntary transfer alone may not qualify.
Keep the orders or agreements and bank records. Before closing, confirm the amount remains eligible and at least the required period will remain from the note date. Build in more than 36 months of runway when possible; exactly 36 months leaves little margin for delays.
Before accepting a support buyout, check your buying power.
A lump sum may sound appealing, but exchanging monthly support for cash can remove income you were counting on to qualify. A cash settlement is not automatically monthly qualifying income. Eligible assets may help under a different program, but the amount and program requirements matter.
Have us compare both scenarios before you agree: continuing monthly support versus a lump-sum buyout. Ask your attorney and financial or tax professional about the other tradeoffs, too. The better settlement for your life and the one that qualifies for a particular loan are not always the same.
No traditional paycheck? There may be other ways to qualify.
A traditional paycheck is not the only path. Some loan programs allow bank statements to be used to calculate qualifying income. Others use eligible assets for an asset-based income calculation. I have access to two specialized options that do not require income verification, but they do require sufficient verified assets. These are higher-risk loans and need careful review to determine whether they fit your situation.
Every scenario is reviewed case by case. The right option depends on your situation, the property, and the lender’s program requirements. These options are not automatic approvals: credit, assets, down payment or equity, reserves, and other requirements may still apply.
Credit, down payment or equity, property, asset seasoning, and other debts still affect eligibility. Rates, costs, and availability vary. We will check what is available through my lending channels or a suitable referral and compare the actual payment and cash needed. Do not assume you cannot qualify because the traditional income route does not fit.
Background: Ability-to-repay requirements. Specialist programs must be confirmed for your situation.
What to bring to our conversation.
- Your current mortgage and HELOC statements, if applicable.
- Your proposed buyout amount, available funds, and expected timing.
- Income and asset information, including any support you want considered.
- Your proposed or signed agreement for review of financing requirements.
- Your budget and plans for the next home.
Do not send account numbers or sensitive financial documents by regular email. We can arrange a secure way to provide application documents when needed.
You do not have to sort through every loan option on your own. Call me to discuss your scenario and the next steps.
Call Dawn: 503-805-7878