Mortgage Loan Officers Please give me some advice?

If there any loan officers out there that can please give me some advice i would really appreciate it. My son has a house that is currently being rented and I rent an apartment. Although he pays his mortgage on time he has bad credit and I have very good credit. His score if 560 and my score is 740. He wants to refinance and put my name on the mortgage since I have good credit. Will the bank allow this? If so how will it be done. Some people are saying he has to add me to the deed and wait 3 months, I have also heard he can just add me to the title and do it right away. I have heard some banks allow you to refi as long as you are just added to title. What is the difference between the two? I am trying to get a clear answer. Also, being that the house is rented do we have to get an investment property rate which is much higher than if it were owner occupied? The tenants that live in the house now are leaving and I am planning to leave my apartment and live there.

I am a loan officer, and here is the answer.
1. Yes, if your son adds to you to the title, he can add you on loan application, however, when banks consider the loan application they pick the middle score for each applicant and then the lowest of those middle scores is used for qualifications. So, that means that your sone will add you to the title and then you better of actually doing mortgage for that property just by yourself, without putting your son on the application -- this is legal. Not all title holders have to be on loan application. If you are planning to move into the house, you will state that on the application and will get the regular "owner occupied" financing.
The banks may want to see proof that you are actually going to live there, probably copies of leases from the appartment that you own, perhaps a copy of a utility bill from the house showing your name.
Your name can be added to the title right at the refinancing closing. The title company will prepare a Quit Claim Deed, that is the document that is used to add or remove someone to/from title.
What is the difference between title and deed... A deed is a document of some action sale, gift or anything. A title a resulting record after all deeds. When someone sold the place to your son they executed a Warranty Deed in which they sold their property to your son, so sellers got removed from the "Title" and your son got added. When your son executes a "Quit Claim Deed" he can convey his interest in the property from himself to "Himself and You as Joint Tenants", thus adding you to the title as a co-owner.

I hope I answered your questions.

Each bank is different as to their guidelines on how long you need to be on title before you refinance. And it varies depending on whether or not you need cash out. If you get quit claimed onto title and can prove that you live there, you can get primary resident interest rates. Good Luck.

Okay, first thing is first. A bank will allow you to refinace the property in your name, once you are added to the deed and title of the property. Just need to have a deed drawn up from your son, to your son and yourself. One specific lender HSBC, allows refinacing with no seaoning on title. Others have other guidelines HSBC is the lender I use in these istuations.

Next, investment property rates are not much higher than owner occupied rates. Since you are moving in to the home, present it as owner occupied. If you happen to be in PA or MD I can help you and get the best rates around.

Sepending on you loan to value ratio (loan amount divided by property value) If under 90%, with your credit and verifying your income you should be eligible for a rate around 6.375% fixed for 30 years.

I can offer more free advice, regardless of where you live. Contact me at 1-800-861-4410 ext. 235.

You can be on the mortgage and not on the deed. However, if the house goes into foreclosure you will be liable for the bad credit. If you are to live there then you should not have an investment rate. Talk to your local broker/bank for more information.

It all depends on the bank. Most lenders will treat your refinance as a "cash-out" transaction, since you're paying off a loan that isn't yours. If he was on the loan with you, you're fine. And you should certainly try to refi with both of you. Look into FHA, it's very easy for co-signing if conventional programs don't work.

Actually, reading this again, why not just have your son sell it to you? If you plan to live there, you shouldn't need him on it.

As for occupancy, it's fine if it's currently rented, as long as the lease is over and you move in within 60 days of closing. You shouldn't have to pay the higher investment property rates if you will truly occupy it promptly after closing.