When two people buy a home together, there are two separate questions: who goes on the loan and who goes on the deed. The loan decides whose income, debts and credit are used to qualify and who is responsible for paying. The deed decides who owns the home. They don't always have to match, but in North and South Carolina there are a few rules that affect married couples in particular. The most important one: in North Carolina, a borrower's spouse generally has to sign the deed of trust even if they aren't on the loan.
I'm Paul Mattos, a mortgage broker in Fort Mill, SC, licensed in North and South Carolina. Couples ask me about this all the time, especially when one partner has stronger credit or income than the other. Here's how it works.
Loan vs. Deed: What's the Difference?
The loan (the note) is your promise to repay the mortgage. Anyone who signs the note is a borrower. The lender uses each borrower's income, assets, debts and credit to decide whether you qualify, and each borrower is responsible for the full debt.
The deed is the document that shows who owns the property. The people named on the deed are the owners, also called "on title."
The security instrument is the document that pledges the home as collateral for the loan. In North Carolina it's called a deed of trust, and in South Carolina it's called a mortgage. People who own the home usually sign it, even if they aren't borrowers.
Should Both of You Be on the Loan?
There's no single right answer. It depends on how your incomes, debts and credit compare.
Putting both people on the loan
This usually makes sense when:
You need both incomes to qualify for the home you want.
Both of you have solid credit.
Both of you want to share responsibility for the loan.
Keep in mind that each borrower's credit is part of the decision. If one person's credit is much lower, it can affect which programs you qualify for and how the loan is priced. How lenders weigh multiple borrowers' credit scores varies by loan program.
Putting one person on the loan
This can make sense when:
One partner can qualify on their own income.
One partner has credit challenges, recent late payments or high debt that would hurt the application.
One partner is between jobs, newly self-employed or has income that's hard to document.
The tradeoff is that only the borrower's income counts. If you need both incomes to qualify, leaving one partner off may lower the price range you can buy in.
What about the other partner's debts?
On most programs, only the borrowers' debts count toward your debt-to-income ratio. North Carolina and South Carolina aren't community property states, so on FHA and VA loans, a spouse who isn't on the loan generally doesn't have their debts counted. Program rules can differ, so ask before you decide who to leave off.
Who Should Be on the Deed?
You can usually choose who goes on title separately from who's on the loan, within the lender's and the loan program's rules. Many couples put both names on the deed even when only one is on the loan, so both own the home.
How you hold title matters too, and it works differently in each state.
North Carolina: tenancy by the entirety
North Carolina recognizes tenancy by the entirety, a form of ownership just for married couples. When a married couple takes title together in North Carolina, it's generally held this way. Each spouse owns the whole property together, and if one spouse dies, the other generally becomes the sole owner without going through probate for the home.
South Carolina: no tenancy by the entirety
South Carolina doesn't recognize tenancy by the entirety. Co-owners, married or not, generally hold title as either:
Tenants in common: each owner has a share they can leave to someone else in a will. This is the default if the deed doesn't say otherwise.
Joint tenants with right of survivorship: if one owner dies, the other generally becomes the sole owner. The deed has to use the correct wording to create this.
Many South Carolina couples choose joint tenancy with right of survivorship, but the right choice depends on your situation. Your closing attorney can explain the options and how the deed should read.
The North Carolina Spouse Signature Rule
This is the one that surprises people. In North Carolina, if you're married and buying a home, your spouse is generally required to sign the deed of trust, even if they aren't on the loan and aren't on the deed. North Carolina law gives spouses certain marital rights in property, so lenders require the spouse's signature to make sure the lender's lien is valid.
Signing the deed of trust doesn't make your spouse a borrower or responsible for the loan payments. It's a consent to the lien on the property. Your closing attorney will explain exactly what your spouse is signing.
What this means for you:
Tell your lender up front that you're married, even if only one of you is applying.
Plan for your spouse to be available to sign at closing, or arrange a remote or mail-away signing ahead of time.
If you're relocating and your spouse is still in another state, set this up early so it doesn't delay closing.
South Carolina doesn't have the same marital-rights rule, so a spouse who isn't on the loan or the deed generally doesn't need to sign there. If they'll be on title, though, they'll usually sign the mortgage. Requirements can vary by lender, so confirm before closing.
Getting Married Before or After Closing
Getting married before closing
Let your lender know as soon as you can. Your loan application, title work and closing documents need to reflect your marital status and legal names. A name change after the wedding can also require updated ID and documents. In North Carolina, your new spouse will need to sign the deed of trust.
Getting married after closing
If you buy before the wedding, you can usually add your spouse to the deed later with a new deed prepared by an attorney. Adding a spouse to title generally doesn't require refinancing, but adding them to the loan does. Talk with an attorney about the deed and with me if you want to refinance into both names.
Buying With an Unmarried Partner
Unmarried couples can buy together the same way: one or both of you on the loan, and one or both of you on the deed.
A few things to think about:
Title. Tenants in common lets each person own a set share. Joint tenancy with right of survivorship means the survivor generally becomes the sole owner. Choose deliberately.
A written agreement. Consider a property or cohabitation agreement that covers who paid what, who pays the mortgage and what happens if you split up. An attorney can draft one.
Gifts between partners. On many conventional loans, a gift from a domestic partner or a fiancé can be an acceptable source for the down payment, as long as it's documented properly. See Fannie Mae's personal gift guidelines. Other programs have their own rules.
Common Situations I See
One partner has much lower credit. We may run the numbers both ways, with both of you on the loan and with just the stronger applicant. The partner who's left off the loan can usually still be on title.
One partner is self-employed with heavy write-offs. Their qualifying income may be lower than they expect. Leaving them off the loan, or looking at a bank statement loan, may help.
One partner has a lot of debt. Paying down certain balances before you apply, or leaving that partner off the loan, can change what you qualify for.
One partner is in the military or a veteran. A VA loan may be an option, and a spouse can usually be a co-borrower. See my VA loans page.
Questions to Answer Before You Apply
Do we need both incomes to qualify?
How do our credit scores and debts compare?
Who wants to own the home, and how should we hold title?
Are we married, or planning to marry before closing?
If we're in North Carolina, can my spouse be available to sign at closing?
Do we need a written agreement about ownership?
Frequently Asked Questions
Can my spouse be on the deed but not the loan?
Often, yes. Many lenders allow a spouse to be on title without being a borrower. They'll usually sign the security instrument, but they aren't responsible for the loan payments.
Does my spouse have to sign if they're not on the loan in North Carolina?
Generally, yes. North Carolina gives spouses certain marital rights in property, so lenders require a non-borrowing spouse to sign the deed of trust. Signing doesn't make them a borrower.
Does my spouse have to sign in South Carolina?
Usually not, if your spouse isn't on the loan or the deed. If they'll be on title, they'll typically sign the mortgage. Check with your lender and closing attorney.
Will my spouse's debt affect my mortgage if they're not on the loan?
On most programs, no. North and South Carolina aren't community property states, so a non-borrowing spouse's debts generally aren't counted on FHA and VA loans either. Rules vary, so ask before you apply.
Can we add someone to the deed after closing?
Usually, yes, with a new deed prepared by an attorney. That doesn't add them to the loan. Adding someone to the loan generally requires a refinance.
What's the best way for unmarried couples to hold title?
It depends on your goals. Tenants in common lets each person own a set share. Joint tenancy with right of survivorship generally passes the home to the survivor. Talk with a real estate attorney before closing.
Let's Figure Out the Best Setup for You
I can run your numbers both ways, with one borrower and with two, so you can see how each option affects what you qualify for before you apply. As a mortgage broker, I compare loan options from multiple wholesale lenders, which helps when two people's incomes and credit don't line up neatly. Start with how to get pre-qualified and pre-approved in Charlotte, or schedule a consultation or start your application. For more on the basics in each state, see my North Carolina mortgage guide and South Carolina mortgage guide.
Paul Mattos
Mortgage Broker | Refine Mortgage
Carolina Home Financing
NMLS# 2339069 | Licensed in NC and SC
Call or text: 980-221-4959
Email: paulm@refinemortgage.net
Refine Mortgage Inc. | NMLS# 2417960 | Equal Housing Lender. This article provides general educational information and is not a commitment to lend, a rate quote, or tax or legal advice. Title, ownership and signature requirements depend on state law, the lender and your situation, so consult a real estate attorney about how to hold title. Financing is subject to credit, income, assets, appraisal, title and underwriting requirements. Not all applicants will qualify.
