Q. A friend is going through a divorce and wants to stay in her home.  I am not sure she can afford that but she feels it is important for the kids.  Are there any other options?  S. Sherry, Wayne, PA

A.  What a difficult decision at a difficult time in life.  Most people who see a lot of this situation will tell you that a careful financial analysis is the best way to start making that decision.  Most often, the remaining spouse must get a loan in his/her own name and may not qualify for the same rate or amount, depending on the work history and income levels. Kids with stressed out parents are not necessarily better off by staying in their original home, even though many parents go to heroic lengths to allow that. I also know divorced parents who move to a more affordable home and find that the new home is therapeutic for them because of the lack of emotional “baggage” associated with the “family” home.
If your friend feels strongly and the standard lender option is not practical, it might be possible to arrange for a family mortgage, say, from a parent or grandparent or even from the ex-spouse at better terms or for a short period until the friend can develop a work history and some savings for the closing costs. I wish some enterprising lender would develop a program for these situations.

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