The Truth About Spousal Buy-Outs
The truth about spousal buy-outs is that they can often bring up issues that borrowers will not foresee.
Despite both spouses having had good legal representation while negotiating their property settlement, it may not be enough to squelch the issues of the spousal buy-out.
You see, when a newly single person applies to finance their divorce settlement, they may be hit with a stark reality. That is, mortgage financing on one income is much more difficult than they anticipated
Some issues that may arise for these borrowers could include:
- The borrower’s employment income isn’t enough to meet the qualification standards.
- The bank will treat and consider spousal support income differently than employment income.
- Despite the borrower having a good job, good credit, and a good property, they may find themselves surprised to encounter an issue when it comes to qualifying.
The last thing your borrower will want to do is go back to renegotiate their settlement because they couldn’t get financing.
The good news is that Kokanee Mortgage has solutions that take a common-sense approach to income qualification during spousal buy-outs. We factor all kinds of income into our underwriting, including:
- Spousal support
- Rental income
- Family Assistance
We are able to take the borrower’s situation as a whole into consideration and formulate a plan to suit their needs.
After some time, these single income borrowers may even be able to refinance back to a conventional lender. Once the spousal buy-out is complete, the client’s income has stabilized, and there is a consistent track record of spousal payments, it absolutely can be possible!
When you need solutions for borrowers following a divorce, contact the underwriters at Kokanee Mortgage for all your creative financing alternatives. Our decades of experience has given us the knowledge and know-how to find lending solutions where others do not. Call the experts at Kokanee mortgage and see the difference we can make for you.