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Can you refinance a current mtg, no late payments if you are unemployed, spouse is not?

I am solo on the mortgage but my spouse's income is more than adequate to cover the mortgage at the '06 variable interest rate of 8.5%.  What is the best program to look at; conventional or FHA?
  • March 08 2012 - Dallas
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Answers (5)

Best Answer

If the spouse has been on title for the past 6 months, then you can refi it under their name. You could also be on the loan with no income. hopefully the spouse has enough income to quallify.

If spouse is NOT on title, you will have to deed her on and wait 6 months.
  • March 08 2012
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As everyone else has stated if your spouse has vested interest on title then he can be added to the new loan without a problem.  I would also keep you on the new loan as a co-borrower so there is no confusion.  You wont add to the application but you wont take away anything if you have a good FICO score.

FHA or conventional?

In my opinion Conventional all the way IF you can qualify.  FHA is becoming more and more expensive with HUD raising the upfront mortgage insurance fee and monthly mortgage insurance premium.

If you currently have an FHA loan then after June 2012 there is going to be a new cheaper FHA streamline refinance that will save you money, but if don't currently have an FHA loan it will cost you an arm and a leg to obtain.

Check your Husbands credit scores and if he has a descent score (680-720) Then I say shoot for the conventional product and get on a much lower fixed rate.

Hope this helps and good luck.
  • March 19 2012
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Thank you for the answers.  Spouse (husband) has been on the title for over five years, has ample income to cover the mortgage and the DTI is very healthy (even without my income; my FICO is still very good).  We would like to refinance, but I've hesitated since losing my job. Property sales are beginning to show positive signs so we are also optimistic about the LTV and would like to reduce the number of years rather than start back over at 30 yrs.  Current mortgage is with one of the "big five" and their "loan officers" are clueless. There is more information on the web, like this site, than I guess are being disseminated in the bank's training classes!
  • March 08 2012
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Is your spouse on title and have they been residing in the home for the last 12 months? If so, you may be able to add them onto your refinance with you. You cannot just " refi into spouse's name."
  • March 08 2012
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You would likely have to refi into spouse's name.
FHA or Conv? Depends on a lot of factors.
I suggest you apply and see what kind of options you get
  • March 08 2012
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