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My husband and I own a home our son lives in. The Mortgage is 361.00 a month. We would like to refinace and make some home improvements but because my husdand and I are retired our income is limited and We're guessing the bank won't let us refinace because of our low income. Our son on the other hand has a good job (has been with the company along time) has a credit score of 620 or better and we'd like to add him on the new refinacing to use his income along with ours. Is that possible? We have owned the home 13 years and have NEVER missed a mortgage payment, or ever been late. The value of the home is appx. 150,000.00 Can we add him and use his income? Thanks

by Friendlyainc107 from , California. Jan 22nd 2016 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,795 contributions

Absolutely.. But because of his low credit score, you will need to go FHA. Also understand that when dealing with retirement income, there are some specific guidelines that allow the lenders to "Gross Up" your monthly income.. This is because for most, the income they receive is not taxable.. and Debt to income ratios (DTI) are based on "After tax income". Example: between you and your husband, you take in $1500 per month in SS income. Since the SS income is your only source and non taxable, then we are allowed to add 25% to it.. ($1500 x 1.25%=$1,875) For qualifying and DTI purposes, your monthly income is $1,875. FHA allows for up to 56% Debt to Income ratios, meaning you can have up to $1050 in monthly DEBT payments including the new mortgage payment. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jan 22nd 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

Sure thing, and FHA isn't the only mortgage option as long as his score is over 620 and the overall application looks ok. Depending on the amount of the loan as compared to the new appraised value, as long as you will have 5-10% or more equity, a conventional loan may make more sense. With 10% or more equity above the loan amount conventional will be a much better option. Some brokers are restricted to higher scores for conventional loans but that is not the rule from Fannie Mae or Freddie Mac

Jan 22nd 2016
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Dan Paladin (dpaladin)
#2 ranked lender in California - 416 contributions

As you have been informed..the answer is yes....to determine the best option a formal no obligation consultation would be advisable. Feel free to contact me at 562-254-5616.

Jan 22nd 2016
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