Homepath Duplex Financing and Marital Property Issues

3 Replies

I live and invest in WI. Currently I have 9 properties - with 1 loan in my name only (pre-marriage), 1 loan with my husband (primary residence) and 1 loan in my husband's name only (pre-marriage). I recently found a home path duplex investment property under $70,000 and am looking to finance it. One lender told me no, because of the "state high cost guidelines" and others tell me that I can't put it in my name only as WI is a marital property state. Further, I'm told that because of marital property law, all loans - his and mine count against me - and most banks will only allow 4 loans (despite home path program allowing up to 10 for 1 person). Any recommendations? 

Does anyone have more than 4 mortgages for their investment portfolio?

How do other's get around marital property?

 Has anyone been denied a loan (despite amazing qualifications) because of "state high cost" laws?

Hi Jennifer,

I can't speak to the "state high cost" laws or the marital property issue as I live in California. In regards to the financing question, I currently have 5 loans in my name only, our primary residence and 4 investment properties.

My advice would be to contact a local bank (local meaning small community bank, not your local Chase or BofA) and see if they will lend to you. I have been speaking with a bank in Milwaukee that will lend on more than 4 properties. PM me if you would like their contact information.


Why don't you go talk to some more banks?  I am under the impression that there are only certain banks that work with Home Path financing, or with their low down payment programs.  But I would call around and try a few times before taking that answer. 

There are definitely investors with more than 4 loans.  Perhaps you can also try in your husband's name?  

Good luck! 

@Eric - Thank you for the hope! I continued to research banks that night and called some more on Friday with much better results. Maybe I just needed to weed out all the bad ones first.

@Karen - This was written a day after I spent 3 hours researching and calling banks that are home path qualified. It was the most frustrating day I've had in a very long time. The issue isn't with my name. It's with people not understanding how the law works. Plus, complicating loan securement was the new laws passed in January regarding Safe Harbor and RESPA.

Finally, I was able to get in contact with 2 banks that support home path (although at 20 or 25% down - NOT 10%). Both understood the WI marital property laws, and said that it wouldn't be a problem to have 1. the loan in either my or my husband's name only and 2. to have up to 10 loans in one of our names.  This is the first that we've attempted to go through this process - what a trip! There is a BIG gap between what we know can be done and finding someone that will do it!

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