Can I Use My Husband's Pay Without Having Him on a Home Loan?
When two people enter a home loan together, they are applying for what is called a "joint mortgage." There are many advantages to a joint mortgage, the largest being the ability to combine the incomes to increase the mortgage's limits. To gain this benefit, both parties must be on the mortgage deed. Therefore, if you do not intend to have your husband on your mortgage, you cannot include his salary on the application.
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Background
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A joint mortgage combines the debt on a property between multiple individuals. Typically, a joint mortgage is shared between a married couple; it is possible to get a joint mortgage without being married, however. When you have a joint mortgage, you share the debt between you. You do not necessarily share ownership. Ownership is determined by the deed or title to the home. You can, therefore, share ownership without sharing debt or share debt without sharing ownership.
Benefits
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The biggest benefit of shared debt comes when you are applying for a loan. If you apply on your own, your personal income and debt will be used to determine your ability to pay. However, in most cases, you and your husband will be paying together. Therefore, it makes sense to use his income as well to determine your ability to pay. By combining your incomes, you should qualify for a larger mortgage than if you apply on your own.
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Drawbacks
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In some cases, applying jointly could actually hurt your ability to secure a mortgage. For example, if your husband has recently gone through a bankruptcy but you have not, you may qualify alone but not if you apply jointly. The same goes for any scenario where you are a more qualified borrower than your husband. In rare cases, therefore, it is best to apply on your own for a mortgage even if you intend to share ownership of a home.
Consequences
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If you determine it is best to apply on your own, you will have to list only your income on the mortgage application. This can significantly reduce your ability to secure a large mortgage. Further, being the sole applicant means you are solely responsible for the home loan and any consequences that come out of loan errors. If you default, the negative credit consequences will apply to you alone. Further, if you and your husband divorce, the debt remains 100 percent yours in the future.
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References
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