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You have been told wrong. The term for this situation is “Continuity of Obligation.” You didn’t say what type of loan you would like to use for the refinance, but for conventional loans the Fannie Mae guidelines are:
“For a refinance transaction (either limited cash-out or cash-out) to be eligible for sale to Fannie Mae, there must be a continuity of obligation if there is currently an outstanding lien that will be satisfied through the refinance transaction. Continuity of obligation is met when any one of the following exist: At least one borrower is obligated on the new loan who was also a borrower obligated on the existing loan being refinanced…”
If there were to owners of a property and then one is off title but both took out the orginial loan, can it be refinanced with just the one person who is currently on title? I’ve been told no.
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