I am a joint owner on a home (unmarried). I am moving to a new state and want to buy a home there. The way I understand it, I have to show that the current home is rented (or make an extra income exceeding its mortgage) so that I can qualify for the most amount of money on a new home. I was wondering... if I sign over my claim on the title to the other person, will I be "free" of the liability on the current home? Would the current home's mortgage no longer count as one of my debts? The other option I'm thinking could work would be if the other owner sent me a check for the home, like a renter. I realize that if I sign over the home I'll be giving up my claim to about $150k of equity, but it might be worth it for the freedom.


Hello @gotaquestion7, if you own a home we do have to count the mortgage debt as part of your debt to income ratio. If you are on the loan, signing over the deed will not take the debt off your credit report. To use rental income to offset the payment typically requires a two year history filed on tax returns. For more information please reach out to one of our licensed loan officers at 800-531-0341. Thank you!