helping son refinance home

Guest 0.10 Dollars($)

Our son is in financial difficulty and we would like to help him refinance his home loan. Are you allowed to co-sign a real estate loan for refinancing. We would like for the home to stay in our son's name but we are not sure if he would be able to do this. thank you.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Yes Pat it can be possible that you are included as co-signer at the time of refinance.

You can go through this page to read more about role of a co-signer.

Miller

ezmortgageloanz · Posted: Tue Jun 19, 2007 10:23 pm Post subject:

The lending term for what you seeking to do for your son is called becoming a "non-owner occupied co-borrower".

For example, FHA allows co-borrowers to help immediate family members (or have a family type relationship) with the qualification of a mortgage assuming the following conditions are met:

a. Financing for 1 unit properties only (no 2-4 property types allowed).
b. The co-borrower can not contribute the vast majority of resources (cash and or income) to the transaction.
c. The maximum loan limit not to exceed 75% of the current market value of the property.

All this being said and in the absense of knowing the specifics of your son's credit issues, he still might possibly qualify for a FHA program without the need for your assistance/intervention (FHA loans are not credit score based).

Hope this helps.

Regards,

Scott Miller

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello Pat,

Basically, what I can understand is that you wish to co-sign on a refinance loan. You can do so because the refinance is similar to paying off an already existing mortgage with a new loan. So, if you cosign, you do not have the ownership rights to the property. It is just that, you are legally bound to repay the loan if your son is unable to do so.

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