Posted on: 15th Dec, 2013 11:27 pm
I purchased a home when the market was at its bottom. Now I want to make some home improvements and so I require a cash out refinance. My lender says that I have too high debt to income ratio. Will it be possible to add my father to the loan as a non-occupant co-borrower in order to qualify?
Hi Guest,
You can add your father to the loan as a non-occupant co-borrower in order to lower your debt to income ratio. However, in that case, you will have to opt for a FHA loan.
Thanks,
Jerry
You can add your father to the loan as a non-occupant co-borrower in order to lower your debt to income ratio. However, in that case, you will have to opt for a FHA loan.
Thanks,
Jerry
Non-occupant coborrowers may NOT be added in a cash out refinance transaction in order to meet FHs credit underwriting guidelines for the mortgage. Any coborrower or cosigner being added to the note must be an occupant of the property.
4155.1 3.B.2.c
4155.1 3.B.2.c