When a couple separates, the matrimonial home can become a point of contention. How does each person get their share?
Most people think that the best option is to sell the home and then both parties can take their share of the proceeds. But what if one person wants to stay in the home?
In some cases it might be possible to refinance the property to take out some of the equity in order to pay out the person who is moving out. Current mortgage rules only allow a refinance of up to 80% of the property value which might not be enough to pay out one party’s share. For example, if the couple bought the house with a 5% down payment five years ago, it isn’t likely that they have paid off enough to be able to refinance.
Good news! There is an option!
Estee has access to a program that allows one party to buy out the other with as little as 5% equity and remain in the home. As long as both names are on the title to the property, all that is needed is a separation agreement that details what the buyout amount is to be. And if there are joint debts, they might even be able to pay those out (but they have to be listed in the separation agreement).
Estee has been working in banking for 12 years with the past 7 focused solely on Home Financing. She prides herself on offering tailored solutions to her clients and she will look after every detail so that you don’t have to.
The spousal buyout program is now a co-borrower program and is now applicable to any people who own a property together!
She has seen a move towards more creative ownership types – friends, siblings, cousins buying together to tackle affordability issues. She is now able to assist when one owner needs to buy out another.
Please let her know if you have any questions.
Estee Buaron is a Mortgage professional with 10 years of banking experience. To learn more about Estee and how she can help you click https://www.thedivorceangels.com/vendor/estee-buaron/