Thursday, March 21, 2013 - Article by: Nevin Williams - Sierra Pacific Mortgage -
FHA loans can be used to buy out your spouse in a divorce.
If you are in a divorce situation and need to buy out your spouse but can't get approved on a conventional loan here are some good things you should know. Per FHA if you do the following you may be able to use FHA financing.
When the purpose of the new loan is to refinance an existing mortgage in
order to buy out an ex-spouse's or other co borrower's equity, the specified equity to be paid is
oconsidered property-related indebtedness, and
oeligible to be included in the new mortgage calculation.
The divorce decree, settlement agreement, or other bona fide equity
agreement must be provided to document the equity awarded to the ex-spouse or co borrower.
Contact us for your FHA financing needs!
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