Thursday, November 15, 2007

query: FHA loan, husband not on loan, can I add him to title

I paraphrased that one. ;) This is FHA's rule, not a state issue. Unless the guidelines have changed, FHA lenders want the vesting on title to match the loan. So, it's likely that the mortgage lender will not allow your husband to go on title.

4 comments:

Anonymous said...

Title and Trust Deeds. If the spouse is on title, he or she is on the Deed of Trust ( also known as the deed of encumbrance or mortgage), but not necessarily on the note ( the actual "promise to pay'). So even if the spouse is on title, you do not have to have them on the loan "note" if he/she is not on the loan. If you just want to add the spouse after the loan has closed. You can deed them on. Make sure and check your states rules on community property...

Diane Cipa, The Closing Specialists® said...

Hi, Anon. Thanks for the comment and thanks for reminding me that many states use the word deed to refer to the mortgage aka deed of trust.

This query speaks directly to the FHA program which has its own restriction. I'll be more specific in that the FHA wants names on the deed (of conveyance)aka title and the note to match.

If the borrower is married and the spouse is not vested in title (deed of conveyance) and is not on the loan (note), then the mortgage aka deed of trust would be adjusted as needed to validate the lien.

In PA we would have the non-vested spouse sign the mortgage and add langage to clarify that they are not a borrower and only signing to validate the lien.

If there are no marital rights in the state, then I would presume that there would be no need for the spouse to validate the lien.

If there are states in which the FHA rules differ, please chime in, folks.

Anonymous said...

Hi, I live in Pennsylvania and my husband was approved for an FHA loan my question is can I be on the deed if not how am I protected and how do I have ownership of the home?

Diane Cipa said...

Hi, Anon. You need to ask his mortgage lender for permission to put you on the deed. Do this as soon as possible and make sure the title agent or attorney knows so they can prepare the documents properly.

If you are not permitted by the lender to be on the deed you can consult with an attorney regarding wills and marital agreements in the event of death or divorce.