Implications of Refinancing a Home From One Spouse to Another

2 Replies

Need Help :) 

I am debating about refinancing a rental in my husbands name to my name. The reason I am interested in doing this is it would allow us to buy another house under my husband for 15%. I am smart enough to know that there are implications because it is going from one owner to another. What I do not know is what exactly are the implications since its not a simple refinance. 

You are in a community property state so at the time you or your husband apply for another mortgage all liabilities will need to be fully disclosed, regardless of who's name they are in? Moving the asset from your husband to you in an effort to hide his liability in it and not disclosing it would be considered mortgage fraud.  FYI...

California law defines community property as any asset acquired or income earned by a married person while living with a spouse. Separate property is defined as anything acquired by a spouse before the marriage, during the marriage by gift, devise, or bequest, and after the parties separate.

Hope this helps

@Elizabeth Colegrove If the title is held jointly, but the mortgage only in your husband's name. Then you should be fine if you are refinancing the mortgage to your name as long as you don't change the title. I am not an expert on the property law, so will differ to @Charlie Fitzgerald on that.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243