We were just asked if an RPA (Residential Purchase Agreement) is needed when a man buys out his ex-wife (who is on title with him).
The answer is no.
Whenever a person buys out a spouse or partner who is on title, lenders consider the transaction a “rate and term refinance,” as long as all net proceeds go to the partner who is getting bought out and deeding off title.
The “rate and term” refinance (instead of a “cash out” refinance) is an important distinction b/c it allows for much higher loan-to-value ratios and better rates.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646