Colorado Divorce Decisions blog
Refinancing after divorce in Colorado: the deadline, qualifying alone, and what lenders count
The refinance deadline in the decree is only as real as the lender who checked it first.
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Get pre-approved on the proposed numbers before the decree is signed. Most Colorado decrees give the staying spouse 60 to 90 days to refinance and remove the other spouse; if it fails, the house is usually sold. Lenders count wages plus support with six months of receipts and three years of continuance, and can exclude debts the decree assigns to your ex. A refinance takes 30 to 45 days; apply the week the decree is entered.
What the lender needs
- The entered decree or court-approved agreement, not a draft.
- The recorded deed from the leaving spouse (the title company handles it at closing).
- Proof of support received and its end dates.
- Payoff statements for every loan on the house.
The buyout as the loan amount
Payoff plus buyout plus closing costs. Under Fannie Mae’s rule a divorce buyout is a limited cash-out refinance if the house was jointly owned 12 months, allowing up to 95 percent loan-to-value; Freddie Mac treats it as a cash-out capped at 80 percent. Ask which agency the file goes to.
The rate trap
Replacing a $350,000 loan at 3 percent with a $500,000 loan at 6.95 percent takes the payment from $1,476 to $3,308. A HELOC for the buyout or an assumption can keep the low rate. The three ways off the loan, and Mike Oswald at Rate for real numbers.
Plain-language education from a Colorado real estate group, not legal, tax or financial advice. Numbers are as of September 2026. Disclaimer.
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Divorce Decisions™: Colorado divorce workshops and education. Real estate services provided by The Kenna Real Estate Group at Keller Williams DTC. Not legal, tax, lending or financial advice.