Summary
Divorce in Flower Mound often involves dividing home equity. An Owelty buyout mortgage allows one spouse to keep the home by paying the other their share. Unlike Texas cash-out refinances capped at 80% LTV, Owelty buyouts allow financing up to 95% LTV through Fannie Mae. Both Conventional, FHA, and VA loans can be used, making this a flexible solution for divorcing homeowners who want to remain in their home.
OWELTY USE In Divorce Buyout Refinance
Only in Texas, the Owelty is used during or after a divorce in splitting the equity of the marital home. The Owelty can actually be used in other scenarios too, like settling the estate between siblings after the last surviving parent passes away.
BENEFIT OF OWELTY VS TRADITIONAL CASH-OUT REFINANCE
When there is a marital home involved in a divorce, the divorce decree will spell out what happens to the equity of the home after the divorce. Sometimes it specifically states a round dollar amount the leaving spouse is to get after the divorce. Other times they write it in as a percentage of the equity. A Texas Cash-Out refinance only allows a loan to value of up to 80%, This posses a problem when the spouse keeping the home needs to access more equity in the buyout. Not to mention, a Texas Cash-Out is more costly, and has more stringent requirements. Fannie Mae will allow you to refinance your home in a divorce all the way up to a 95% Loan to Value, and at best of the best rate and term mortgage interest rates.
Loan Types Allowed in Owelty Buyout Refinances
Many people think you can only use an Owelty within a conventional loan, but that is simply not the case. Owelty buyouts can be financed using FHA and VA loans too.
How to Learn More about the Owelty Refinance or Get Approved
Contact me for questions or Apply Online to get preapproved before the divorce is finalized to structure a buyout that best fits your situation.
To learn more about the process of the buyout using the Owelty, view my divorce buyout video.
You Might Also Like
Leave a Reply