There are some old posts about this, so check the search feature..But I believe they can do it as long as they haven’t tapped into a home equity line of credit…Might be some tax consequences (maybe) in the form of getting a 1099 for the difference, but it is still a maybe..

Better to save 100K and repair your credit in 8 years, as long as you dont plan on buying a home in that time..The loan is secured against the property unless a home equity loan has been used..(i think)…