PRODUCT DESCRIPTION - This product allows a person to buy out a spousal partner when going through a Separation or Divorce.
IDEAL CLIENT - For borrowers who are going through a Separation or Divorce and want to keep their current home and buy their matrimonial home. This is an alternative to selling, splitting equity and starting from scratch and buying another home.
Example: You have lived in your home for a while now. You are separated and its up to you to either sell the current home, or come up with cash to pay out the ex-spouse. If you refinance traditionally, you are permitted to only refinance to 80% of the homes' value. But under this program, you can go to 95% Loan-to-Value and keep the home saving you realtor fees.
MAXIMUM LOAN-TO-VALUE - The maximum Loan-to-Value for this product is 95% on a purchase.
DOWN PAYMENT SOURCES - The equity in the home will be used as a down payment for this product.
SPECIAL CRITERIA - You will need to provide confirmation of the amount required to pay out the ex-spouse by way of Separation Agreement. Only the dollar amount listed in the Agreement can be rolled into the mortgage (and nothing more or less). In addition to the Separation Agreement, you will need to provide a purchase contract between the two parties. * If one spouse is not currently on the mortgage or title, he/she will need to be added to the title prior to closing this mortgage.
View the entire Documents Required for a spousal buyout.