Divorce Home Loans
Flexible financing options for individuals going through a divorce.
Divorce Home Loan Solutions
A Divorce Home Loan can provide several advantages for individuals going through a divorce. Here are three primary benefits of this type of mortgage product:
Facilitates Asset Division
Better Terms & Interest Rates
Mortgage lenders who specialize in Divorce Home Loans understand the unique financial circumstances of divorcing individuals. As an expert in this area, we offer flexible underwriting guidelines and competitive interest rates to accommodate the needs of borrowers in this situation.
What is a Divorce Home Loan?
Divorce Home Loans
A Divorce Home Loan, sometimes referred to as a Divorce Buyout Loan, is a specific type of mortgage product designed for individuals who are going through or have recently completed a divorce. This type of loan can help one spouse buy out the other spouse’s share of the property, allowing the purchasing spouse to retain ownership and the other spouse to receive their fair share of the equity. This can be a practical solution for divorcing couples who wish to separate their financial and living arrangements while maintaining a sense of stability for themselves and their families.
We Can Help
Hurst Lending understands the challenges individuals face when going through a divorce and offers specialized assistance to navigate the complexities of divorce home loans. With a focus on providing support and understanding during this transitional period, Hurst Lending’s experienced team can guide you through the process, offering flexible financing options tailored to your unique circumstances. Whether you need to refinance an existing mortgage, access home equity, or secure a new loan for your post-divorce home, Hurst Lending is dedicated to helping you achieve your goals and move forward with confidence.
I’ve worked with Jay Hurst on several loans. Jay is extremely knowledgeable and helpful, and was able to advise me on the options for my recent purchase. Great guy to have on your side, and great rates!
Hurst Lending was very easy to work with and stayed in constant contact with me throughout the loan process so I never had to wonder what the status of the loan was.
The Hurst Lending Difference
Low downpayment options available.
With a quick closing and no red tape.
We offer some of the best rates available.
Creative approaches for unique situations
What is the Difference Between a Divorce Home Loan and an Owelty Loan?
A Divorce Home Loan and an Owelty Lien are both financial tools that can be used in a divorce to help facilitate the division of a marital home. However, they differ in their structure and function.
Divorce Home Loan:
A Divorce Home Loan is a mortgage product specifically designed for individuals going through or recently completing a divorce. It allows one spouse to buy out the other spouse’s share of the property by refinancing the existing mortgage and extracting a portion of the home’s equity as cash. The cash can be used to pay off the departing spouse’s share of the property or for other purposes related to the divorce.
Key features of a Divorce Home Loan include:
- Cash-out refinance
- Flexible underwriting
- Consideration of alimony or child support as income
- Loan-to-value (LTV) ratio requirements
Owelty Lien: An Owelty Lien, on the other hand, is a legal instrument that creates a lien against the marital property in favor of the departing spouse. It is used to secure the departing spouse’s equitable interest in the home and ensure they receive their fair share of the property’s value when the property is refinanced or sold. An Owelty Lien is typically created through an Owelty Deed of Trust and is recorded in the public records.
Key features of an Owelty Lien include:
- Legal instrument securing the departing spouse’s interest
- Can be used in conjunction with a refinance or sale
- Recorded in the public records
- Requires the agreement of both spouses
In summary, a Divorce Home Loan is a mortgage product used to refinance the property and buy out the other spouse’s interest, while an Owelty Lien is a legal instrument that secures the departing spouse’s interest in the property. Both tools can be used to help divorcing couples divide their marital home, but they serve different purposes and functions in the process. It’s essential to consult with a financial advisor, attorney, or other professionals familiar with your specific situation to determine which option is the best fit for your needs.
Frequently Asked Questions
Can I apply for a Divorce Home Loan while in the process of getting a divorce?
Yes, you can apply for a Divorce Home Loan while in the process of getting a divorce. It can help facilitate the division of the marital home and provide a smooth transition for both parties.
Is it possible to qualify for a Divorce Home Loan if my credit score has been affected by the divorce?
Yes, it is possible to qualify for a Divorce Home Loan even if your credit score has been impacted by the divorce. Lenders who specialize in these loans often have more flexible underwriting guidelines that consider the unique circumstances faced by divorcing individuals.
How much equity can I access through a Divorce Home Loan?
The amount of equity you can access through a Divorce Home Loan depends on factors such as the property’s appraised value, the requested loan amount, and the loan-to-value (LTV) ratio. Typically, we can enable you to access a portion of the home’s equity as part of this process.
Can child support or alimony payments be considered as income for qualifying for a Divorce Home Loan?
Yes, child support or alimony payments can often be considered as income when qualifying for a Divorce Home Loan. These payments can help demonstrate your ability to repay the loan.
Will I need to pay closing costs for a Divorce Home Loan?
Yes, like any other mortgage, you will be responsible for paying closing costs when obtaining a Divorce Home Loan. These costs typically include appraisal fees, title insurance, origination fees, and other associated charges.
Can I use a Divorce Home Loan to buy out my spouse's share of the property if I'm not on the original mortgage?
Yes, you can still use a Divorce Home Loan to buy out your spouse’s share of the property, even if you are not on the original mortgage. The loan will involve refinancing the existing mortgage and restructuring the ownership of the property.
What happens to the Divorce Home Loan if I decide to sell the property in the future?
If you decide to sell the property in the future, the Divorce Home Loan will need to be paid off from the proceeds of the sale, just like any other mortgage. The remaining equity will then be divided between the divorcing parties according to the divorce agreement.
How long does it typically take to process a Divorce Home Loan application?
The processing time for a Divorce Home Loan can vary depending on factors such as the complexity of the divorce settlement, the lender’s workload, and the completeness of your application. On average, it may take around 30 to complete the loan process, but it can vary. It’s advisable to start the application process as early as possible to allow for any potential delays.
Divorce Home Loan Expertise
We help simplify the divorce home loan process.
About Hurst Lending
We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process. Have you ever experienced the frustration of trying to buy before you sell; Losing your dream home in a bidding war; Trying to get a No-Seasoning Cash-out loan; Being unable to obtain a mortgage because your new or old house needs modest repairs; or simply because you prefer using our funds to close quickly without having to liquidate other investments? Our Industry-leading suite of short-term loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.