When buying a home with a spouse the last thing you think about is “what happens if we split up?”. To be honest its not something you want to think about. However if you ever have to go through this situation you do have options. Since the refinance rules have changed and now you can only refinance up to 80% loan to value, it has made it hard to pull out the equity to split between spouses. That is why some lenders have now created a program to allow a spouse to refinance the home up to 95% loan to value.

If this is something you would like to do, there are some requirements:

  • a valid separation agreement
  • both spouses need to be originally on title
  • a purchase agreement needs to be drawn up
  •  you may need an appraisal just to verify the value of the home

If you have any questions on this program please give us a call anytime!