Divorce refinance - Many times when a couple want to get a divorce there may be a marital property that will need to be sold or refinanced. To refinance a property the person keeping the property will need to apply for a new mortgage. At the closing the person removing their name from the mortgage must sign off the old mortgage and title. Before the closing the title company will prepare new deed.
The new deed will only have the name of the person remaining with the property.
Remove your name
Before the divorce is finial a refinance will allow you to remove your name from the title, mortgage and note. Since the property is in both names both the person keeping the property and the person who wants to remove their name will have to sign the new documents.
The person keeping the property will sign a new deed, a new mortgage and a new note. The person removing their name will sign a claimer saying they have no rights to the property.
If your divorce has been finalized you will need a copy of your divorce decree.
For a divorce refinance you will need the following:
If your divorce has not been finalized the person being removed from the mortgage must sign off.
The person keeping the property will have to apply for a mortgage. A two year work history is usually required. A debt to income ratio of less than 55% will be accepted.
Conventional or FHA
Since the person keeping the property will need to apply for a mortgage on their own both Fannie Mae or FHA will allow you to refinance.
If your credit scores are low a FHA loan would probably be a better choice. If your credit score are higher then a conventional loan would probably be a better choice.
Since January 20, 2010 most lenders require a minimum credit score of 640 to qualify for a mortgage. FHA requires a minimum credit score of 580 to refinance up to 97.50%.
Fannie Mae will let you refinance with a 620 credit score and allow a loan-to-value of up to 125%.
Before or after a divorce
Divorce refinance - Before or after a divorce really does not matter. If you need or want to refinance before your divorce that's fine.
If you want to refinance after your divorce we will need your divorce decree.
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www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.
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Minimum Credit Score Needed
to Refinance
FHA
Requires a minimum credit score of 500 to refinance
VA
Requires a minimum credit score of 500 to refinance
Fannie Mae
Requires a minimum credit score of 620 to refinance
Freddie Mac
Requires a minimum credit score of 620 to refinance
Call Now, Our Staff is Available
888-958-4228