HELOC- solo vs with spouse on loan
I'm getting ready to apply to HELOC on my primary. Spouse and I are on the title and loan. I believe I can qualify for the HELOC on my own, saving my wife with additional debt ( when used) on her credit.
Is there anything to think about if I apply to the HELOC solo? I'm sure she would need to sign something for the loan.
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HI Patrick, you can go up to 90% CLTV for HELOC primary or 89.9% for cash out refi but rates can be a bit higher depending how you use those funds for a better ROI. Is this house under your name or joint? Some states are communal states, so you just have to make sure if the debt carries to your spouse as well. However, there are ways to work through ant not get hit in terms of DTI qualifications.
As for getting a HELOC, it's prime + index (fluctuates based on the market), so to answer your question, if you are able to qualify by yourself, then it's always a better option to get a loan solo, then use your spouse's income as a backup for future investments. @Carlos Valencia @Albert Bui