Documents Needed to Refinance a House in a Divorce

A divorce is never easy, especially when a couple has invested a lot into the relationship. During the course of the divorce, a judge may order the couple's home to be sold or refinanced.

Significance

A judge may allow one party to keep the home, further ordering that party to pay off the other and remove them from the deed.

Documents

All documentation you would normally present for refinancing, such as income, appraisal, insurance, mortgage statement and credit report are still required with the inclusion of a divorce decree/separation agreement.

Divorce Decree/Separation Agreement

This document will state who will take possession of the home, financial support that might be ordered and any other specifics to the divorce.

Income

The party that's seeking the refinance must prove their ability to pay the new loan without the other's income. Alimony or child support is acceptable income as long as it meets the lender's guidelines.

Considerations

A thorough review of the credit report will determine if their income can pay current debts along with the new debt. If the majority of the credit was taken out jointly, then the decree must state who's responsible for which debt.

References

• Equity Source
• HG.org
• FHA Home Loans