Spousal buyout refinance
Refinance to buy out your spouse and keep the home
The house is often the biggest asset in a California divorce. If you want to keep it, a buyout refinance puts the loan in your name and pays your spouse their share of the equity in one closing.
- Pay your spouse their share as set in your settlement agreement
- Remove your ex from the mortgage so neither of you is tied to the other
- Use support income to qualify when it's documented properly
- Compare a refinance against assuming the existing loan
Your options
Three ways to keep the house
Equity buyout refinance
A new loan in your name pays off the old mortgage and pays your spouse. Some programs price a buyout under a settlement agreement better than a typical cash out refinance.
Loan assumption
Keep the existing rate on an assumable FHA, VA or USDA loan, with the lender releasing your ex. Works best when the buyout can come from other assets.
Offsetting assets
Your spouse takes retirement funds or other property instead of some of the home equity, which keeps your new loan smaller. Your attorney and I can plan this together.
Leaving the house?
Make sure your name comes off the loan
Signing a quitclaim deed takes you off title, but not off the mortgage. Until the loan is refinanced or you're formally released, that payment shows up on your credit and counts against you when you try to buy your next home.
The fix is to build the refinance or assumption into the settlement with a deadline. I can help your attorney set terms that are realistic for the spouse keeping the house.
Common questions
Can I just assume the mortgage after divorce?
Sometimes. FHA, VA and USDA loans are generally assumable with lender approval, and some lenders will release a spouse from a conventional loan. Assumption keeps your existing rate, which can be a big win if it's lower than today's. It usually doesn't free up cash for a buyout, so we compare it side by side with a refinance.
Is a quitclaim deed enough to take my ex off the house?
No. A quitclaim deed changes the title, not the loan. Your ex stays responsible for the mortgage until it is refinanced, assumed with a release, or paid off. That matters for both of you, because the old payment counts against whoever is still on it.
Do I need to wait until the divorce is final?
Not always. Many lenders can close a buyout refinance with a signed marital settlement agreement, as long as it spells out the property and the buyout. Each program has its own rules, so I confirm before you count on it.
Can support income help me qualify for the refinance?
Yes, if it's ordered in writing and expected to continue long enough. Lenders generally want at least three years of continuance and a record of receipt. I review the order with you up front.