Can I be removed from the mortgage?

Question

Hello BP WorldI am writing this to find out some answers on a question I had I over the weekend.

My wife and I are on the mortgage together for our primary property, but if I could get off the mortgage and then get my own mortgage for our first rental could that be possible? In order to avoid the 20% down payment needed for a rental vs perhaps going the FHA route, which I know would mean I would have to prove proof of my own occupancy of the property.

I look forward to getting some feedback!

Joe Splitrock · Answer

@Sean Parno

@Sean Parno buying an investment property with FHA or any type of owner occupied loan, without occupying the property is mortgage fraud. Even if you could get removed from your current mortgage, you can't buy an investment property with less than 20% down. As far as FHA, you don't just need to provide "proof of occupancy", you need to actually occupy the property which means sleeping there. That means you are your wife would be separating, which I don't think is what you had in mind.

Louie Gabriel · Answer

Depends. You could talk to the mortgage company about her doing an assumption in the loan. I think this is usually only possible on a FHA loan. Otherwise she's going to have to refinance it into just her name.

Susan Martinez · Answer

@Sean Parno

Hi

Theoretically that sounds right. There are other things to think about as well. If someone knows more than I please feel free to correct or add info.

The biggest thing about getting off the mortgage is that the property gets reassessed for its value and your property taxes can go up.

From my understanding this happens anytime the title changes.

Colleen F. · Answer

@Sean Parno  I would be surprised if you could find a lender to take your name off your mortgage and you can only have one primary residence.  I actually was asking this question  recently  about removing myself down the road if I took a mortgage with my son and they said no it would need to be refinanced.

Caroline Gerardo · Answer

To get off the loan your wife MUST apply to refinance in her name sole. No lender is just going to take you off after quitclaiming. Even if you divorce you are still liable for the loan until it is paid in full.

Andrew B. · Answer

Yes its possible but not the right course of action here. You can buy another house and make it your primary home, and you don't have to remove your name from the current property. If you have lived there for the first 12 months you owned it, you have fulfilled your commitment to the mortgage company.

Theresa Harris · Answer

Does your wife qualify for the full amount of the mortgage on her own?  Also if you want to do less than 20% down, you MUST live in the place for at least one year.  To do otherwise is creating mortgage fraud.

Sean Parno · Answer

Joe, yes I am starting to grasp this might not be the best approach!

Sean Parno · Answer

Andrew, Thanks fro your feedback. The problem with that is, my wife doesn't want to move from our current house, she is in love with it! So that's why I was approaching it from the other angle.

Sean Parno · Answer

Anna!This has been more than helpful! I appreciate your feedback and will take all measures into consideration! Thanks!

Can I be removed from the mortgage?

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