Should I add spouse to title?

4 Replies

Do you folks generally add their spouses to title for each investment property? Mainly, I just want to make sure that we are both able to have up to 10 mortgages. I heard that if you put your spouse on title only (and not on loan) this could make this property count against the spouse in the max allowed mortgages, but not sure if its really true. I know its a bit more of a paper work hassle, but its nice to have her name on there just in case :).  Are there any other considerations?

Ours are held in our LLC in which my wife has a 50% ownership interest. If I were going for the 30 yr fixed 10 I would do them in just my name and vice versa.

I was also advised by a lender to put each property/mortgage in one name only if my spouse and I wanted to take advantage of the lowest rates possible when acquiring property. I also learned that 25% down is much better than 20% if you want a low rate.

With that said, you each need to be able to qualify for the mortgage. What can hurt you is that once you file your taxes, after depreciation, maintenance, etc, you actually might not have any income from your rental, and that can impact future acquisitions.

On another note, I'm not limiting myself to 20 mortgages and am going for MF next. Keep in mind, you can do portfolio loans to consolidate all those mortgages in the future. 

My husband and I take our mortgages just in our individual names. We do title in both. Only hurdle we ran into so far is that the tax liability for his property just counted as a part of my debt to income ratio to qualify for my rental property. Because we are both on the title, we are equally liable for the taxes.