Loan Assumption vs Refinance?

Thanks for stopping by Lender411. Whether or not your parents can add you to their loan depends on the loan program they are currently in and whether you will reside in the property or you will be a non-occupying co-borrower. Most of the comments you have seen are correct. Find a trusted Loan Officer outside of the lender your parents currently have to advise you. A good Loan Officer will tell you if the lender is offering you something better than a new lender could and present you with their best options as well.

This will be difficult,if you do not live in the home. You may have to qualify on your income as a non-occupant borrower, and make them renters, in order to meet debt ratio requirements. I your parents are over 62, and have about 50% equity in the property, contact me about a reverse mortgage.

As others are staging, it's best to get a second option. Don't just go off of what your current lender says. Even if they cannot help you refinance your parent's loan, another lender might be able to. Shopping around is key. We are licensed in California - if their home is located in California feel free to give us a call to chat about your situation at no obligation.

>>Unfortunately, they don't have the necessary assets or income to qualifyThat's why they should be seeing if a Reverse Mortgage is a good option.

First let me say that your lender is incorrect.. Co-signing is still allowed.. His company may not allow it, but most lenders will. As others have suggested, your parents might qualify for a reverse mortgage, in which case there is no need for you to co sign, since there is no income or credit qualifying.. They just have to have sufficient equity based on their age.. If they are not old enough to qualify for the reverse mortgage, then you can co-sign and refinance into a fixed rate mortgage.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

That is not true, what you would need to do is put yourself on the ownership, it is called a quit claim deed. once you are on the ownership, you will be anle to do a refinance, you still have to qualify, but it can be done

Do you have time to talk on the phone? I will be be able to advise you what to tell your current lender on how to go about this.

You have to be very careful here. If you put yourself on the deed and then try to do a refinance and you become the primary borrower as you have the qualifying income you may be required to finance the property as a Non-Owner occupied property which would increase the rate and limit your loan amount. Have you tried the HARP 2.0 loan as it does not require assets and income qualification? www.LechelMortgage.com

I believe you need to get a second opinion as it is possible to be added as a Non Occupying Co Borrower.Different Lenders have different guidelines.Al HenslingUnited American Mortgage800-708-5626

The #1 refinance mistake is contacting your current lender... Talk to another lender. Generally speaking, you can refinance any property and add as many borrowers as necessary as long as one of the original owners remains on the loan. There of course are more guidelines and rules, but go talk to a local mortgage broker and avoid the unlicensed application clerks at banks. www.JoeMetzler.com