Q: My husband is not listed on our house title or loan. Can I sell him my house for the appraised amount?
We are wanting to do a cash out refi but having trouble getting the house to appraise high enough. We are looking at alternative options for getting cash out of the house. I owe 313$ house appraised at 385$ can I sell to my husband for this amount?
A: In Kansas, a spouse has full legal rights to sell a piece of property to another spouse. You could also transfer the house to your spouse without value. From your question, however, it would appear that the real question is whether you could complete such a sale and your husband obtain financing for a sum greater than $313,000 plus closing costs? A logical place to begin is to fully disclose the proposed transaction to the bank to determine whether the bank is willing to provide the sought financing. It is important to fully disclose to the bank facts and the structure of the proposed transaction. If the bank is fully apprised, it should be able to make its business decision as to whether such a transaction is one it is willing to finance.
The Kansas Constitution requires that both spouses sign off on the sale or encumbrance of real estate, so your husband's signature would be on a deed transferring title to him. You would have to sign any mortgage that was granted. Those and other considerations relating to income for debt service may make the ultimate transaction appear to the bank to be similar to a refinance.
Being transparent with the bank in the loan request process will help to answer your question. If the bank is otherwise willing to loan money, you should consult with an attorney as to the actual structure and documentation of the transaction.
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