During a divorce, both spouses may receive good legal representation while negotiating their property settlement. This does not always translate to the spousal buy-out.
When a newly single person applies to finance their divorce settlement, they may be hit with the stark reality that is mortgage financing with only one income.
Some issues that may arise during a spousal buy-out 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 financing solutions that take a common-sense approach to income qualification during a spousal buy-out.
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 properties have been transferred, 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.