Why Is a Spouse Required to Sign on a Mortgage Loan When They Are Not the One the Loan Is Given To?

It's perfectly legal for you to take out a mortgage solo, even if you're married. The lender, however, may still want your spouse to sign off on the mortgage. Even if he's not on the hook for the loan, having him sign the paperwork protects the company's lien on your house.

Note vs Mortgage

The mortgage is actually two documents, not one. Signing the promissory note commits you to pay back all that money you borrowed. The mortgage or deed of trust says that if you don't, the lender can foreclose on the house. If your spouse isn't your co-buyer, she doesn't have to sign the note, but the lender may insist she sign the mortgage. That ensures the lender's claim on the property trumps any marital rights she has to the house.

Ownership

In community-property states, if you buy the house after you marry, your spouse automatically owns half of it, unless your prenup rules that out. Other states, such as Massachusetts and Ohio, have "dower" laws that give the spouse a claim on the property. The last thing your lender wants is to have someone else with a legal claim that could take priority over the mortgage lien. Having your spouse sign the mortgage eliminates that as an issue.

Good News

If you're concerned about your spouse's credit dragging down your loan application, don't worry: Her signing the mortgage won't make that happen. As long as you have the money and credit score to go it alone, you can apply by yourself and keep your spouse's financial history off-stage. That doesn't prevent your spouse sharing title to the house, as long as the deed names you both as the new property owners.

Considerations

Whether or not your spouse signs the mortgage, he's not liable for the debt if his name's not on the note as well. If the house is 100 percent yours and yours alone -- you have a prenup clearly separating your finances, or you bought it with an inheritance that's your separate property -- he doesn't have a legal claim to the house. In that case, your lender may not care whether he signs.

 

About the Author

Author of two film reference books, "Cyborgs, Santa Claus and Satan" and "The Wizard of Oz Catalog." Published in Air & Space, Backpacker, Newsweek, The Writer, and multiple trade journals (can fax samples if requested, don't have them available digitally)