I had someone ask for a family member how they can buy a home. The person buying supposedly has a great credit score, works and makes enough to buy the home they are seeking. They were denied a home loan from a lender that I had never heard of but with all listed they should have been approved. I asked the person was this the buyer’s first home or an investment property and that is when I was informed that the buyer was married!
She still owned a home together with her husband even though they plan on never getting back together. I let the person asking know that is the reasoning behind her denial. She owns a home already and until she removes her name from that house, she will not be able to buy a home as her “principal residence”. Why, you ask? The answer is this-she already has an interest in a property and until she gets rid of that interest, she can buy another home but only as a second home or as an investment with higher interest rates. I advised her to check with an attorney but that it will take either a legal separation or divorce, make hubby refinance and pay her share of the equity out to her for this to be right. Then she is also removed from the loan on the property and no longer responsible for the debt.
That can then give her the keys to her own home.