Posted on: 25th Apr, 2010 07:23 pm
Hi,
My wife and I are getting a divorce and I am getting the house according to the decree. In order to get her name off the deed I was going to apply for an assumption. We are both commuting rather far to work now because of the separation and current living arrangements. That being said, we are looking for a fast solution so she can move on and I can do what I plan on doing with the house which is probably selling it. I am looking for advice as to what the fastest, cheapest way is the best option for me. Refinancing in my name only or the assumption?
Thank you.
My wife and I are getting a divorce and I am getting the house according to the decree. In order to get her name off the deed I was going to apply for an assumption. We are both commuting rather far to work now because of the separation and current living arrangements. That being said, we are looking for a fast solution so she can move on and I can do what I plan on doing with the house which is probably selling it. I am looking for advice as to what the fastest, cheapest way is the best option for me. Refinancing in my name only or the assumption?
Thank you.
You can ask your wife to sign a quit claim deed and transfer the property solely in your name. Once the property is transferred to you, then you can apply for a refinance and remove your wife's name from the mortgage docs.
Assumptions may only be done if the exsiting lender does assumptions based on the type loan you have. Not all loans are assumable---very few other than FHA loans are assumable.
Call the 800 customer service number for your existing lender and ask if the loan is assumable under divorce conditon. If they say yes, assume it---you will have to qualify.
If not assumable, your only choice is refinance, or, sell the property rather than refinance.
Call the 800 customer service number for your existing lender and ask if the loan is assumable under divorce conditon. If they say yes, assume it---you will have to qualify.
If not assumable, your only choice is refinance, or, sell the property rather than refinance.
So how can I tell if I will qualify to assume it? It is an FHA loan, thanks. I would prefer to see if I would qualify on some sort of calculator before I submit the application and wait 3-4 months for the answer. Thanks!
Credit score of 620 or higher would be good.
House payment plus monthly payments for debts on credit report divided by gross monthly income should be iedeally 42% or lower. Higher could be possible.
Comparing the assumption to refinancing depnds a little on how much equity is in property, your credit score, mortgage balance, present mortagge rate.
House payment plus monthly payments for debts on credit report divided by gross monthly income should be iedeally 42% or lower. Higher could be possible.
Comparing the assumption to refinancing depnds a little on how much equity is in property, your credit score, mortgage balance, present mortagge rate.