I am unaware of any programs from either Fannie or Freddie that are designed expressly for divorce refinance or purchase. On the contrary, I believe that there is a bevy of guidelines that, as interpreted by many underwriters, actually make qualification for spousal buyout loans much more difficult. Most divorcing people need to qualify using existing lending programs combined with guidance obtained from well experienced divorce finance professionals, who are equipped to obtain accurate factual data for presentation to underwriters and to request and obtain program exceptions where necessary. So the best advice for the day is, don’t look for the simple answer of a “divorce program”, because it’s really not out there.
Instead, spend your time seeking out the skill and expertise necessary to help you strategize, qualify, and ultimately complete all of your aspirations to refinance or purchase a home after your divorce is completed.
Len Rossine is a Divorce Lending Specialist and considered an authority on divorce lending in New Jersey. The views and opinions expressed herein are solely those of the author.