What the house is worth now
An appraisal sets the current value. The new loan is held to a share of that value, so some equity stays in the house, and the share sets how much of a buy-out the loan can pay.
Montclair, Essex County
Divorce and the house: mortgage choices for Montclair, NJ owners
When a marriage ends, the house is often the largest decision left: keep it and buy out a former spouse’s share, sell it, or buy the next home on your own. Here is how each path works with a lender. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Where are you now?
Pick the closest, or call and talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Montclair housing
Homes and households in Montclair
Montclair, Upper Montclair included, counts about 40,300 residents and about 16,500 homes in the American Community Survey’s 2020 to 2024 estimates.
Of about 9,000 owner-occupied homes, an estimated 67.8 percent, about 6,100, still carry a mortgage.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Montclair, and we lend across New Jersey.
The figures
- Median home value: about $906,400 for owner-occupied homes
- Owners and renters: an estimated 56.9 percent of occupied homes are owned and 43.1 percent rented
- Built in 1939 or earlier: an estimated 59.4 percent of homes
- Two-family buildings: an estimated 10.5 percent of homes are in a building of two units
- A million dollars or more: the Census value for an estimated 39.5 percent of owner-occupied homes
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Keeping the house
Buying out a former spouse’s share
A refinance is a new mortgage that pays off the one you have. In a buy-out, the new loan can also pay your former spouse’s share, so the house and the mortgage end up with the person who keeps them.
Your credit and your income
The new loan is underwritten on the people who will be on it. Everyone on the loan sends their own identification and income documents, and the credit report is pulled again.
No usual wait on title
Most cash-out refinances expect some months on title first. A home received in a divorce is one of the exceptions, so the refinance does not have to wait for that clock.
Title is checked for who owns the house and any liens on it, and because it is your main home, a federal right to cancel runs before any money is paid out. See refinancing your mortgage.
The file
What a lender reads after a divorce
A divorce changes the file in two places: the money coming in and the money going out. Support you receive can count as income if you want it counted; the lender then needs the court order and proof that the payments arrive.
Support you pay works the other way. Child support is a debt the lender needs to know about, even when it does not show on your credit report, so list it at the start rather than letting it surface in underwriting.
Send the decree early. It is the paper that shows who keeps the house, who pays what, and from when.
What to gather
- The decree: your divorce decree, and the settlement if it sets the buy-out
- Support: the court order and proof of receipt for any support you want counted
- The mortgage: your latest statement for every loan on the house
- Your pay: recent pay stubs and W-2s; tax returns instead if you work for yourself
- Your accounts: bank and investment statements, every page
How the deed changes, and the tax side of a buy-out, belong with your attorney and your CPA or tax adviser.
Selling instead
Buying the next home on your own
If the house is sold, the next purchase starts with the same conversation as any other: your price range, your savings for the down payment and closing costs, your income and your credit.
A budget for one
A loan officer works out a price range on the income you will have now, support included if you choose to count it, and the programs that fit it.
Buying a homeA settlement in accounts, not wages
If the settlement left you with savings rather than a salary, an asset-based mortgage can count verified savings, investments and retirement accounts in place of, or as well as, a paycheck. Nothing is pledged.
Asset-based mortgagesA smaller place
Moving from a house to a condominium? A condominium needs a project review, so tell your loan officer early what kind of building it is.
Questions
Questions from Montclair homeowners
Do you lend in Montclair?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
Do you have an office in Montclair?
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County, and we lend across New Jersey. Call 732-686-9999 to talk with a licensed loan officer.
Can I refinance soon after the house is awarded to me?
Usually, yes. A home received in a divorce is one of the exceptions to the time on title most cash-out refinances expect. The program and your file still decide the rest.
Does alimony or child support count as income?
It can, if you want it counted. The lender needs the court order and proof that the payments are received. Child support you pay is listed as a debt.
How much can a buy-out refinance pay?
That turns on the current value, the balance still owed, the program and your credit. The new loan is held to a share of the value, so some equity stays in the home.
Who changes the deed?
Your attorney. The lender checks who owns the home and any liens; how title changes, and the tax side, belong with your attorney and your CPA or tax adviser.
Talk with a loan officer near you
Get a quote online, or call us and talk it through with a licensed loan officer.
What happens next
- Tell us about your loan. A few quick questions about the property and the loan you want. No credit check to start and no obligation.
- A licensed loan officer reviews your answers and follows up with you, usually within one business day.
- This is a request for a quote, not a loan application and not a commitment to lend.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.