Divorce Buyout Refinance in Florida: How to Keep the House

When a marriage ends, the house is often the biggest asset on the table. If one of you wants to keep it, the usual path is a divorce buyout refinance: a new loan in the keeping spouse’s name that pays off the old mortgage and pays the departing spouse their share of the equity. I’ve helped Florida families through this for 25+ years. Here’s how it works.

Why a Refinance Is Usually Needed

• The loan and the title are separate. A quitclaim deed takes your ex off the title, but it doesn’t take them off the mortgage. As long as both names are on the loan, both of you are responsible for it.
• Your ex needs to move on. While their name stays on your mortgage, that payment counts against them when they try to buy their next home.
• The settlement usually requires it. Many marital settlement agreements give the keeping spouse a deadline to refinance or sell.

How a Buyout Refinance Works

1. Agree on the buyout amount. Usually the departing spouse’s share of the equity, as set out in your marital settlement agreement or court order.
2. Apply in your own name. You qualify on your income, credit and debts alone. Alimony or child support you receive may count as income once it’s documented. See alimony and child support income.
3. Appraisal. The home’s value sets how much equity you can use.
4. Closing. The new loan pays off the old mortgage (and any home equity line), and the departing spouse receives their share. Your ex signs a quitclaim deed, often at the same closing.

Buyout Rules by Loan Type

• Conventional (Fannie Mae). A buyout is generally treated as a cash-out refinance. The usual six-month ownership waiting period doesn’t apply when the property was legally awarded to you in a divorce or separation. Cash-out loan-to-value limits apply, typically up to 80% on a primary residence.
• Conventional (Freddie Mac). Freddie has a “special purpose” cash-out refinance built for buying out a co-owner. It generally requires both owners to have owned the home, and lived in it as a primary residence, for at least 12 months. It also needs a written agreement signed by both parties, and the spouse keeping the home can’t receive cash from the loan.
• FHA and VA. Both have refinance options that can work in a divorce, with their own occupancy, seasoning and loan-to-value rules. VA eligibility depends on the veteran keeping the home.
• Not enough equity or income? Sometimes the answer is a smaller buyout, a longer timeline in the settlement, or selling. It’s better to know before the agreement is signed.

Program guidelines may change, and lender overlays may be stricter. Because I work with many wholesale lenders, I can match the buyout to the program that fits it best.

Sell or Refinance?

Keeping the house makes sense when one spouse can qualify alone, the payment fits the new budget, and staying matters, often for the kids’ schools. Selling can be cleaner when neither spouse can qualify alone, or when both need their equity in cash. Run the numbers before you decide.

If the divorce led to a foreclosure or late payments: divorce by itself generally isn’t treated as an extenuating circumstance, but some divorce-related situations are reviewed differently, such as a foreclosure on a home the decree awarded to your ex-spouse. See extenuating circumstances for FHA and VA loans. Guidelines may change, and lender overlays may be stricter.

Talk to a Lender Before the Settlement Is Final

The most expensive mistake I see is a settlement agreement that promises a buyout the keeping spouse can’t qualify for. A 15-minute pre-qualification before mediation can confirm the amount is realistic. Family law attorneys and mediators: I’m glad to review a proposed buyout with your client, no cost and no obligation.

Already awarded the house but not on the loan? See who can refinance when not on the loan.

Frequently Asked Questions

How do I buy out my spouse’s share of the house in a divorce?

Usually with a buyout refinance: a new loan in your name that pays off the existing mortgage and pays your ex their agreed share of the equity. You must qualify on your own income and credit.

Does a quitclaim deed remove my ex from the mortgage?

No. A quitclaim deed removes them from the title only. They stay responsible for the mortgage until it’s refinanced, paid off, or the lender formally releases them.

Do I have to wait six months after the divorce to do a cash-out buyout?

Often not. Under Fannie Mae guidelines, the six-month ownership waiting period doesn’t apply when the property was legally awarded to you in a divorce. Other programs have their own rules, and lender overlays may be stricter.

Can alimony or child support help me qualify to keep the house?

It can, when it’s court-ordered, documented, and expected to continue for at least three years. Lenders usually also want proof that you’ve been receiving it.

More family situations: Family and Mortgages in Florida. Get started: Free rate quote · Start an application · Call or text 904-880-6741.

Available for qualified borrowers. Program guidelines apply and may change, and lender overlays may be stricter. Rates and terms are subject to change. All loans subject to credit approval. This is general information, not legal or tax advice; consult your family law attorney. Reviewed September 2026.

Nathan Young, NMLS #325206 | North Star Mortgage Network, Inc., NMLS #356789 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | Equal Housing Lender

Inherited a home with siblings instead? See how to buy out your siblings on an inherited house in Florida.