SBA lenders willing to not co-sign spouse?

searcher profile

July 11, 2022

by a searcher in Manhattan Beach, CA 90266, USA

Can anyone recommend SBA lenders who may be willing to do a loan without requiring the spouse to co-sign? I'd like to try to minimize my personal guarantee risk. I understand I may be able to place my house in my spouse's name, and then not have her co-sign. Thus protecting the house. I'm trying to see if this is a proven method.

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commentor profile
Reply by a lender
from University of Wisconsin in Madison, WI, USA
If your spouse is on title to your residence, and if you have more than 25% available equity in your house and the loan is not fully secured, the bank is required to take a lien on it. - See Page 258 of the SBA's Standard Operating Procedures (link here: https://www.sba.gov/document/sop###-###-#### lender-development-company-loan-programs-0 )

On your question about transferring the house into your spouse's name, unfortunately there is not a work around.


From the SBA's Standard Operating Procedures (Page 258): "b) Real estate transferred by the Applicant to the non-owning spouse or minor children within 6 months of the date of the application will not be exempt from consideration as available collateral."
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