When Your Spouse Isn’t on the Mortgage but Still Has to Sign
Buying or refinancing a home, but your spouse isn’t on the loan? Depending on where you live, they might still be required to sign mortgage documents—even if they aren’t applying for the loan.
This is a big deal in community property states, where both spouses automatically share ownership of assets and debts. If you’re financing a primary residence, your non-purchasing spouse (NPS) must be involved in the process—even if they aren’t financially responsible for the mortgage.
So, how does this impact your loan? What documents do they need to sign? And what happens if their credit isn’t great?
Let’s break it all down.
What Is a Non-Purchasing Spouse?
A non-purchasing spouse (NPS) is the legal spouse of a borrower who is not listed on the mortgage loan. They’re not financially responsible for the mortgage payments, but in certain states, they must sign specific documents due to shared property rights.
Whether an NPS has to sign closing documents depends on:
- Your state’s property laws (community property states vs. separate property states)
- The type of home you’re financing (primary residence vs. investment property)
- The loan program (government-backed loans have additional rules)
Do Non-Purchasing Spouses Have to Sign Closing Documents?
Community Property States
If the home is in a community property state, a non-purchasing spouse must sign certain mortgage documents—even if they aren’t on the loan.
These states recognize that everything acquired during a marriage belongs to both spouses, including a home purchase or refinance. That’s why lenders require an NPS to sign documents acknowledging that a mortgage is being placed on the home.
There are eight community property states in the U.S.:
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Wisconsin
If you’re buying or refinancing a primary residence in any of these states, your spouse must sign closing documents—even if they aren’t financially responsible for the loan.
If they can’t be present at closing, you’ll need to set up a power of attorney (POA) with the title company in advance.
Separate Property States
In all other states, spouses do not automatically have shared ownership of assets and debts. This means an NPS typically does not have to sign closing documents unless they are on the title.
However, if your spouse is on the home’s title but not on the loan, they may be required to sign certain legal documents at closing.
Does a Non-Purchasing Spouse’s Credit Affect Loan Approval?
It depends on the type of loan you’re getting.
Government Loans (FHA, VA, USDA)
If you’re using an FHA, VA, or USDA loan in a community property state, your non-purchasing spouse’s debts must be included in your debt-to-income (DTI) ratio—even though they aren’t on the loan.
What does this mean?
If your spouse has a car loan, student loans, or credit card debt, those balances will count against you when qualifying for the mortgage.
Their credit score does NOT impact your loan approval or interest rate—only their debts matter.
Conventional Loans (Fannie Mae & Freddie Mac)
For conventional loans, a non-purchasing spouse’s debts do not count toward the borrower’s DTI, and lenders do not pull their credit report.
If your spouse has a high amount of debt, a conventional loan could be the best option since their financial obligations won’t affect your ability to qualify.
Should You Add Your Spouse to the Mortgage?
Some couples assume both spouses should be on the mortgage, but that’s not always the case. Depending on credit scores, debt, and income, keeping a spouse off the loan can sometimes be a better move financially.
When to Include Your Spouse on the Mortgage Home Loan:
- They have a high credit score (helps get a better interest rate)
- They earn income (increases loan qualification amount)
- You plan to own the home together long-term
When to Leave Your Spouse Off the Home Loan:
- Their credit score is low (could raise your interest rate)
- They have high debt (might make it harder to qualify)
- Your income alone is enough to qualify
One key factor: The mortgage industry uses the lowest middle credit score between both applicants. So even if one spouse has excellent credit, a low credit score from the other spouse could negatively impact loan terms.
Final Thoughts: Does Your Spouse Need to Be on the Loan?
If you’re buying or refinancing a home, understanding the role of a non-purchasing spouse is critical—especially in community property states.
- Community property states require NPS signatures on mortgage documents.
- Government loans count an NPS’s debt in qualifying, but not their credit score.
- Conventional loans ignore an NPS’s debt and don’t require credit checks.
If you’re unsure whether your spouse should be on the loan, talk to an experienced mortgage lender who can help you navigate the best option for your situation.
Need Expert Non-Purchasing Spouse Advice?
Buying a home is one of the biggest financial moves you’ll make. If you have questions about non-purchasing spouses, loan programs, or qualifying, we’re here to help.
Call our experienced and compassionate team today and get expert mortgage guidance. Let’s make sure you get the best loan for your situation!
Mark Pfeiffer
Branch Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com