The Spousal Buyout program is designed to assist individuals in buying out their spouse or partner during a separation or divorce. This solution enables you to retain ownership of your current home without the need to sell, split equity, or start over with a new property.
This program is especially helpful for those navigating a separation or divorce who wish to keep their matrimonial home. Instead of selling the property, dividing the equity, and purchasing another home, you can buy out your ex-spouse and continue living in the home you already love.
For instance, if you’ve been living in your home for years and face separation, traditional refinancing typically allows borrowing up to 80% of your home’s value. With this program, you can refinance up to 95% Loan-to-Value (LTV). This increased LTV makes it easier to keep your home, avoid realtor fees, and maintain stability during a challenging time.
The program allows financing up to 95% Loan-to-Value when purchasing the home from your ex-spouse. Additionally, the equity in your home serves as the down payment, simplifying the process and removing the need for additional funds.
To qualify, you must meet certain conditions. Confirmation of the payout amount to your ex-spouse, as specified in the Separation Agreement, is required, and only the listed amount can be included in the mortgage. A purchase contract between both parties is also necessary. If the spouse being bought out is not currently on the mortgage or title, they must be added to the title before closing.
This program offers a practical and effective way to maintain ownership of your home while addressing financial challenges during a separation or divorce.