FHA non borrowing spouse question

[Anonymous]

I live in IL (not a community property state) does FHA still require my non borrowing spouse's credit to be run? I do not need his income to qualify and he will not be on the title/deed either.

[ShanetheMortgageMan]

Nope, FHA only requires it in community property states.

[madmann26]

You do realize that if you don't put your spouse on the title and you drop dead (just a scenario), you've pretty much screwed him with being able to assume the property, right?

Your spouse can be on the deed/title and not be on the loan. It's perfectly ok. The title/deed is what matters in case something happens to you.

[Anonymous]

Thx Shane.

[Peter1142]

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@madmann26 wrote:

You do realize that if you don't put your spouse on the title and you drop dead (just a scenario), you've pretty much screwed him with being able to assume the property, right?

Your spouse can be on the deed/title and not be on the loan. It's perfectly ok. The title/deed is what matters in case something happens to you.

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I was not able to have my spouse on the deed/title. It was not allowed at closing. I was able to record a new deed after closing. In most states, it is meaningless, your spouse will inherit your property, possibly with your children, even if they aren't on the deed.

[flan]

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@madmann26 wrote:

You do realize that if you don't put your spouse on the title and you drop dead (just a scenario), you've pretty much screwed him with being able to assume the property, right?

Your spouse can be on the deed/title and not be on the loan. It's perfectly ok. The title/deed is what matters in case something happens to you.

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That's what wills and TODIs (transfer on death instruments, which avoid probate, not availale in all states.) are for.  There are lots of good reasons why the OP might not want their spouse on the deed.  Fear of dropping dead doesn't outweigh them.

edit: I see the OP is in IL.  TODIs are available in IL, and it's probably worth consulting with your attorney about the value of one in your situation. 

[Anonymous]

"there are lost of good reasons why the OP might not want their spouse on the deed"
NUFF SAID.
Anyways no worries, my questions was answered

[StartingOver10]

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@Peter1142 wrote:

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@madmann26 wrote:

You do realize that if you don't put your spouse on the title and you drop dead (just a scenario), you've pretty much screwed him with being able to assume the property, right?

Your spouse can be on the deed/title and not be on the loan. It's perfectly ok. The title/deed is what matters in case something happens to you.

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I was not able to have my spouse on the deed/title. It was not allowed at closing. I was able to record a new deed after closing. In most states, it is meaningless, your spouse will inherit your property, possibly with your children, even if they aren't on the deed.

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Not so sure about this statement above. I have seen some issues with property and heirs when not properly titled.

Check with a good attorney for estate planning. Do your research first before you meet with an attorney. This is also called "asset protection."  Plan long before you need it. There are lots of reasons to plan in advance - not only death. You wouldn't believe how messy these things can become if you don't set it up right.

[Peter1142]

Sorry, it isn't meaningless... there is probate if there isn't a joint deed (of a certain type)... though your spouse should still get the property.. you didn't "screw them"... probably. Estate planning is definitely something I know almost nothing about, just did some research on this specific topic recently.

[flan]

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@Peter1142 wrote:
Sorry, it isn't meaningless... there is probate if there isn't a joint deed (of a certain type)... though your spouse should still get the property.. you didn't "screw them"... probably. Estate planning is definitely something I know almost nothing about, just did some research on this specific topic recently.

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The OP lives in IL.  She can get a TODI drafted, which will transfer the title to her designated beneficary (presumably her spouse, but maybe someone else) on death, without probate.  The TODI will take precedence over a will in most cases, and is superior to other claims.  The mortage remains, of course, but they don't really care as long as they're paid on time. 

But, by all means, take estate planning advice from a professional, not some random person on the internet.