Buying a House Without Your Spouse

Married couples sometimes choose to make a home purchase independently. Usually, that's because one spouse doesn't have stable employment or carries significant debt. Whether you can buy a house without your spouse will depend on the state you live in and individual financial considerations. There's also the consideration of keeping the title and the mortgage separate or only one. Read on for key considerations before buying a house without your spouse.

Can You Buy a House Without Your Spouse?

It’s possible to buy without your spouse. Usually, you might choose to buy a house without your spouse if you want to leave your spouse off the mortgage or you want to be the sole owner of the property and leave your spouse off the title. 

Whether the second option is possible and whether they will own 50% of the property comes down to whether you live in common law or community property states. In community property states, all assets you gain during marriage are owned by you and your spouse. In these states, you could keep your spouse off the mortgage but not off the property's title.

The community property states are:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

On the other hand, if you live in a common-law state, you’re not required to share ownership of property. You can apply for a mortgage without your spouse, and your spouse's financial situation or credit score won't determine your mortgage eligibility. 

You can also put your name on the title and leave your spouse off. If you and your partner split up, the home will be yours in these states.

When Does It Make Sense to Exclude Your Spouse’s Name From the Mortgage?

In several situations, mostly because of financial considerations, spouses may decide to only put one partner on the property. Note that the name on the mortgage states who is responsible for the loan. You could opt to keep your spouse's name off the mortgage and still add them to the title. Here are key considerations. 

Lower Credit Score

When you apply together, your spouse's credit scores and total debt will be considered and will impact the mortgage approval amount, interest rate and other terms. If you choose to apply alone, only your credit score will be considered. It makes sense to keep your spouse’s name off the mortgage when they have a lower credit score.

High Debt-to-Income Ratio

It makes sense to keep your spouse’s name off the mortgage when they have a high debt-to-income ratio, as that can lower your mortgage approval amount or limit available lenders. 

History of Financial Instability

It may make sense to keep your spouse’s name off the mortgage if they have a history of financial instability, such as bankruptcy, foreclosure or late payments. In that case, you risk not getting mortgage approval.

High Level of Debt

If your spouse carries high debt, it can affect your total debt-to-income ratio. In that case, it makes sense to keep your spouse’s name off the mortgage when they have a high level of debt to secure a higher total loan amount, lower interest rates or more favorable terms. 

Not Contributing to the Down Payment

If your spouse is not contributing to the down payment, in some cases, you might also choose to keep your spouse’s name off the mortgage. On the other hand, when you apply for a mortgage without your spouse, you can't use assets that are in your spouse’s name only to apply for the loan.

How to Buy a House Without Your Spouse?

The steps for buying a house without a spouse are almost the same as how to buy a house with your spouse. The only difference is that you won't need to provide the required information to secure the mortgage, like proof of income, savings, debt, employment history and government-issued ID. Here are the steps to take.

• Save for a downpayment (if necessary)
• Decide on an area or research possible target neighborhoods
• Apply for mortgage pre-approval
• Work with a real estate agent to view possible properties
• Put in an offer
• When the offer is accepted, perform all contingencies
• Finalize the mortgage amount
• Close on the home — congratulations — you bought a house!

Pros of Buying a House Without Your Spouse

You gain some significant advantages to buying a house without your spouse in certain cases. Here's what you should consider. 

Independence

Buying a house without your spouse lets you make decisions and fully control the property. It also means that you can decide who inherits the home in the future. Couples may choose this option, for example, if you have children from a previous marriage that you'd like to inherit the house. 

Credit Score Protection 

If one spouse has a lower credit score, buying a house without them can prevent their credit history from impacting the mortgage application and interest rates. This move can lead to significant long-term financial savings worth thousands or tens of thousands of dollars over the loan's lifetime. 

Estate Planning

Buying a house individually can simplify estate planning, providing greater control over how the property is distributed in the event of death or divorce. As in the example above, you'll have complete control over who inherits the house. 

Cons of Buying a House Without Your Spouse

While there are many advantages to buying a house without your spouse, you face a few disadvantages that could put a strain on your relationship or expose you to additional financial burdens. Here's what you'll want to consider. 

Financial Burden

Buying a house without your spouse means taking on the financial responsibility for mortgage payments alone, which can be challenging if you have a single income or face unexpected expenses. It can add stress or financial strain or create a point of friction within your relationship. 

Emotional Impact 

Buying a house without involving your spouse can create emotional strain and mistrust in the relationship. It may lead to feelings of exclusion or lack of partnership, potentially affecting the overall harmony and stability of the relationship. Likewise, even if you agree together that it's best that you have the mortgage, you could still opt to add your spouse to the title. 

Buying Real Estate on Your Own

There are many reasons spouses may choose to buy a home separately, from getting better interest rates to independence. Another reason some spouses may choose to buy houses separately is in the case of real estate investment. If you file taxes separately, you could potentially save on rental income tax payments if the lower-earning spouse owns the property.

Before buying a house without your spouse, it's important to discuss the decision with them and make plans together to avoid the possible disadvantages of this option. Ready to get started? Learn how to buy your first rental property or how to buy a house from a family member.

Frequently Asked Questions