If you need to refinance your mortgage, but do not qualify, can you add someone onto the loan to help?

 

No. This would be called a non-occupying co-borrower, defined as someone responsible for the mortgage payment but not living in the house.  In most states, if a person is on the deed (owner) they must also sign the Mortgage (responsible). However, some banks will let a person simply sign the Note (promise to pay) as a guarantor of the debt in case of default.

 

A non occupying co-borrower may be used only for a mortgage to purchase a home. Only when the co-signor was on the original transaction, may they be used to qualify for a refinance.  In addition, the new rules for mortgages say that the occupying person must qualify for the entire housing expense on their own. The co-signor can only help out with the other debt. Back in the day of easy money, it was simpler to go “stated income” (unverified), increase the borrower’s monthly gross income and qualify without a co-signor. Not anymore…..

 

Dale Siegel