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pdrinternet · Joined: 02 Apr 2009 Posts: 2 1.57 Dollars($)

My husband and I are buying a house in CA. My understanding is that to qualify for FHA loan, my husband's credit is better than mine, so I must sign an Interspousal Transfer Grant Deed. After the purchase of the home, is it simple to add my name to the title? Would this complicate ownership of the house if he should pass away?

sara · Posted: Fri Apr 03, 2009 1:50 am Post subject:

Hi pdri,

California is a community property state. Both husband and wife would have equal rights to the property and in case of divorce the property would be divided between them equally. You do not need to sign an Inter-spousal deed just because your credit is not good. Many a times, lenders want one of the spouses to sign inter-spousal deed so that they would be able to sell off the property in case of default without satisfying the claims of the other spouse.

If you sign an inter-spousal deed and make it your husband's separate property, I don't think later on the lender would allow you to include your name in the property deed.

Take Care.

pdrinternet · Joined: 02 Apr 2009 Posts: 2 1.57 Dollars($)

Thank you. Do you think my husband would have problems refinancing in a couple of years and then having the title changed to include both our names?

Guest

I believe that Sara is correct on this, you shouldn't have to sign an interspousal deed. I would refer your lender to HUD's mortgagee letter 2008-40 regarding FHA loans, it pretty much states that a non-borrowing spouse can just sign the deed of trust and not the note. Ultimately though, whether they are right or wrong, your lender calls the shots, and if you go with them I'd would inquire about getting your name put on title after the closing.

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Does it complicate the title when using Interspousal Transfer?

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