Can One Spouse Short Sell & Other Get New Mortgage?

I’m about to put my house up for short sale, the mortgage is just in my name.  Can my husband get a mortgage in his name while our house is up for sale?

Peg

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Hi Peg,

It’s possible, but his new lender will be required to verify his housing history for the most recent one to two years and that might make originating a new loan right away unlikely.  For example, FHA rules (4155.1 REV-5, p.44) state:

Previous Rental Or Mortgage Payment History. The payment history of the borrower’s housing obligations holds significant importance in evaluating credit. The lender must determine the borrower’s payment history of housing obligations through either the credit report, verification of rent directly from the landlord (with no identity-of-interest with the borrower) or verification of mortgage directly from the mortgage servicer, or through canceled checks covering the most recent 12-month period.

Thanks for the questions and hope this helps.

Paul