Why Does My Husband Have to Sign My Loan?

Why does my husband have to sign for a loan i am appying to?

2 Answers

I'm assuming that you didn't intend for your husband to be on the loan. If in fact you have tried to apply by yourself, chances are that your ratios were too high. Meaning that the debt you had on your credit report was more then what your income is. Your Lender will calculate your personal debts from your credit report and your monthly income. If your income doesn't cover the new proposed mortgage payment, mortgage insurance, hazard insurance, and taxes that you will pay on a monthly basis; along with your current debt, then they will usually add the spouse on to the loan. They normally tell you this though, as they will need to collect the spouse's information and pull a joint credit report.

If your husbands income and credit isn't being considered for your loan, then he does NOT have to sign anything.

In a community property state a spouse may have homestead or other rights to a property just due to the fact that they are married to the owner. These rights to the property must be subordinated to the lender's interest in the property to "perfect" the lender's lien even if the spouse is not going to be obligated on the loan. This is required even if the spouse is not going to be obligated to repay the loan. In this case, while the spouse may not be obligated to repay the loan, if it is not repaid per the agreement with the lender the spouse would lose any interest they might have in the property. Please check with a real estate attorney in the state the property is located in to see if this scenario applies to your situation.