Co-Signor and Debt Ratio for a Cash Out Refi (loan, credit card, requirements)

[restive1]

I have a house worth approx. $1mil. with a !st.td balance of 93k. I'd like to do a cash out re-fi for about 250k to consolidate other debts and some home improvement. I'm retired and have very little income. My son is very succesfull and has been supporting me and is happy to co-sign for the new loan.
My personal credit history is excellent with the exception of credit utilization which is high, and therefore is lowering my current fico.

Can I qualify for an "A" loan using my son's income?

Whose fico will be used?

Since the loan will be used to pay-off exsiting debt thereby raising my fico score will that be considered?

With my son as a co-signor, how will the debt ratio be calculated? Both considered alone or together?

Thanks for any insight into the underwriting process.

[renriq02]

answers may vary with lender...read below

Most lenders will have a cashout limitation at 200k.

My recommendation is to look at the FHA reverse mortgages

Originally Posted by restive1

I have a house worth approx. $1mil. with a !st.td balance of 93k. I'd like to do a cash out re-fi for about 250k to consolidate other debts and some home improvement. I'm retired and have very little income. My son is very succesfull and has been supporting me and is happy to co-sign for the new loan.
My personal credit history is excellent with the exception of credit utilization which is high, and therefore is lowering my current fico.

Can I qualify for an "A" loan using my son's income? Depends on midscore, and income doesnt determine the rate.

Whose fico will be used? Lower of the two midscores.

Since the loan will be used to pay-off exsiting debt thereby raising my fico score will that be considered? No. You can easily charge the credit cards back up.

With my son as a co-signor, how will the debt ratio be calculated? Both considered alone or together? You will both be considered, but if he's not living in the property...they can only use a certain percentage of his income with an FHA loan. Most loans do not allow for a co-signing.

Thanks for any insight into the underwriting process.

[restive1]

The 250k includes paying off the exsisting 1st TD.

I'm not old enough for a reverse mortgage (60yrs)

Is there a Fannie or Freddie program that will allow me to use my son's income and my equity on a 25%LTV cash out refi?

[renriq02]

FHA....and maybe MyCommunity.

They call it 'non-occupant coborrower'. They will only use a certain percentage of his income. Probably 80-90% minus his monthly debts

If you have a good credit score..the system may use only your income to qualify. Your LTV is really low so this may offset income requirements.

[Daddys///M3]

Originally Posted by restive1

The 250k includes paying off the exsisting 1st TD.

I'm not old enough for a reverse mortgage (60yrs)

Is there a Fannie or Freddie program that will allow me to use my son's income and my equity on a 25%LTV cash out refi?

Just so you know, there is a RM out there called the "Simple60" for borrowers 60 and older. I am not very familiar with it, so I would suggest you consult a local professional if you would like more info.