While divorcing spouses may receive good legal representation in negotiating a property settlement, they may assume that there will be no problem financing a spousal buyout. When they apply to finance the settlement, they’re hit with the stark reality of mortgage financing on one income.
Sometimes the employment income isn’t enough to meet the qualification standards or the bank doesn’t treat spousal support income the same as employment income. Your borrower is perplexed because they have a good job, good credit and a good property, The last thing they want to do is go back to renegotiate the matrimonial settlement because they couldn’t get financing.
The good news is that Kokanee Mortgage has financing solutions that take a common-sense approach to income qualification. Things like spousal support, rental income, and family assistance can all be factored into our underwriting.
Once the properties have been transferred and your client’s income has stabilized and there is a track record of spousal payments, they may be able to refinance back to a conventional lender.
When you need solutions for borrowers following a matrimonial breakdown, contact the underwriters at Kokanee for creative financing alternatives.