Can You Get a Home Equity Loan Without Your Spouse Signing?

Borrowers and Owners

Home equity loan closing documents require the signatures of both the property owners and the borrowers. However, if your spouse has bad credit, you can apply for the loan in your own name rather than jointly with your spouse. Your spouse must still attend the loan closing and sign as the property owner while you sign as the owner and the borrower. In most circumstances, under state law, your primary residence by default belongs to both you and your spouse, and, therefore, each of you must sign as the owner if not also the borrower.

In some states, you can use an interspousal transfer to transfer ownership from you and your spouse to either you or your spouse as an individual. This means your spouse not only does not have to sign the loan, but your spouse no longer owns the home. However, many states do not allow for interspousal transfers, and even in states where you can set up these transfers, divorce laws may allow a court to overturn the transfer and put the property back under the ownership of you and your spouse.

Laws requiring both spouses to sign on home equity loans and mortgages generally only apply to their primary residence. If you own a rental property or an investment home, your spouse usually does not have to sign for a home equity loan if you bought the house by yourself rather than jointly with your spouse. Likewise, your spouse can borrow against a rental home you do not own. However, in many states, if you buy a rental property after you get married, the property belongs to both of you under community property laws, even if only one of you signed the deed.

If your state's laws enable you to obtain a home equity loan without including your spouse, you cannot include your spouse's income as your own when applying for the loan. This can make it difficult for people who file their taxes jointly to verify their income if you have income from multiple sources rather than just a flat salary. Many people exclude a spouse from an application on the basis of the spouse's poor credit, but insufficient income can also cause the lender to decline your loan.