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Spousal Consent States
Last updated: July 2, 2024
What is spousal consent in real estate?
A spousal consent form is an acknowledgement by your spouse that you are receiving a loan associated with real property. Spousal consent may be required by your mortgage lender depending on the state in which the subject property is located and the state in which your primary residence is located.
If you are married and the subject property is located in one of the following states OR you live in one of the following spousal or community property states, then your spouse will need to sign our spousal consent form to acknowledge that you are taking on mortgage debt.
Spousal States
- Alabama
- Alaska
- Arkansas
- Colorado
- Florida
- Illinois
- Iowa
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Jersey
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- South Dakota
- Tennessee
- Vermont
- West Virginia
- Wyoming
Community Property States
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
Why is spousal consent required by lenders?
When the subject property or borrower's primary residence is located in a spousal state or a community property state, the signing of a spousal consent form is commonly required by mortgage lenders, including for business purpose loans for the following reasons:
- In the event of default and foreclosure, the lender needs to protect themselves from a possible claim by the spouse that the mortgage was not valid because they did not consent to the borrower/guarantor receiving the loan.
- The lender needs to protect themselves from the possibility that the spouse can claim they have rights to the property that can interfere with recourse proceedings.
Does spousal consent make my spouse a guarantor on the loan?
No. Spousal consent is simply an acknowledgement by your spouse that you are receiving a loan.
Why is spousal consent required if my spouse is not a member of my borrowing entity or a guarantor on the loan?
Even for business purpose loans (i.e. DSCR loan, Fix and Flip loan), property law in Spousal Consent states and Community Property states can be interpreted that spousal consent is required and if spousal consent is not given then recourse proceedings can be delayed.
Spousal Consent for DSCR Loan
Spousal consent is required by DSCR lenders if either the subject property or your primary residence is in a Spousal State or a Community Property State.
Spousal Consent for Fix and Flip Hard Money Loan
Spousal consent is required by hard money lenders if either the subject property or your primary residence is in a Spousal State or a Community Property State.
