A veteran and her husband are purchasing a home in Texas with a VA loan. The veteran has full VA entitlement. Her husband is not a veteran. Which of the following is correct about the husband's role in the Texas VA loan closing?
Correct Answer
A) The husband must sign the deed of trust on the homestead property but is not required to sign the promissory note
Under Texas homestead law, both spouses must sign the deed of trust on homestead property regardless of the loan type. The husband signs the deed of trust to consent to the lien but does not need to sign the promissory note unless he is a co-borrower.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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