Posted on: 28th Aug, 2008 10:58am
If you do not meet the income requirements for an FHA home loan, you can use a cosigner to qualify for the loan. FHA loans are primarily offered to those who occupy the property as principal residence. But a cosigner on an FHA loan is not required to use the property as a primary residence. For instance, if your parents own a home of their own, but want to help you purchase a home of your own, they can cosign with you as non-occupying cosigners.
Who can qualify as a cosigner?
A cosigner on an FHA loan needs to meet the following criteria:
- He has to be your blood relative (e.g. father, mother, uncle, etc.) to be a cosigner on the loan.
- If he is not your relative, you will have to prove that you have a long-standing, substantial relationship with him.
- He should meet all the required eligibility requirements (income, debt, credit, etc.) which you as a primary borrower have to meet.
Can anyone having an FHA loan cosign on another FHA loan?
It is possible that an individual has an FHA loan on his own property and he cosigns on your FHA loan on a different property. As long as the cosigner's debt-to-income ratio does not exceed the allowable limit, he can cosign on the FHA loan to help you qualify.
Can a cosigner help you qualify even if you have bad credit?
A cosigner can help you qualify for the FHA loan if you do not have good credit. However, if there are negative items like judgments, collections, etc. on your credit report, you will not get approved for the mortgage. In that case, a cosigner even with very good credit scores cannot help you qualify.
Hello there.
My husband and I are trying to qualify for an FHA loan. My father has offered to co-sign, but I am getting conflicting information.
Here is the scenario:
I am just shy of being approved on my own for the amount we want. Husband has credit issues and cannot qualify. My credit is fine, but I need a bit more income. Husband makes more than enough to qualify us, but his divorce caused a lot of issues.
Father does not live with me, and owns a home, but does not have an FHA mortgage.
Can he be a co-borrower or co-signer or help us at all? Is this a lender choice?
Thank you for your time.
L
My husband and I are trying to qualify for an FHA loan. My father has offered to co-sign, but I am getting conflicting information.
Here is the scenario:
I am just shy of being approved on my own for the amount we want. Husband has credit issues and cannot qualify. My credit is fine, but I need a bit more income. Husband makes more than enough to qualify us, but his divorce caused a lot of issues.
Father does not live with me, and owns a home, but does not have an FHA mortgage.
Can he be a co-borrower or co-signer or help us at all? Is this a lender choice?
Thank you for your time.
L
What is the precess for removing a fha co signer from a note.
cece, if you are seeking an fha loan, your cosigner will need a credit score of at least 620, and your combined income will need to allow you to afford the home you are planning to purchase. that's a simple answer - hope it's enough.
Am I considered a first time home buyer if I co-signed for a friend as a non occupant co-signer? I'm interested in buying a home for the first time and was wondering if I still qualify for the first time home buyers tax credit of $8K.
Thank you.
Thank you.
Hello,
You stated you are just shy of qualifying. Would it be an option for your father to gift you a sum to lower the loan amount to your qualifying level?
Good luck.
You stated you are just shy of qualifying. Would it be an option for your father to gift you a sum to lower the loan amount to your qualifying level?
Good luck.
you are best-served by contacting the irs directly for that answer, but those who will not qualify are those who actually own real estate as a primary residence. therefore, you ought to be all right inasmuch as you are not an owner but only co-signer.
i have no idea how my above answer popped up on this discussion. it has no relevance to it, and it was intended for a whole different question.
sorry if any of you have been confused by this...i sure am!
sorry if any of you have been confused by this...i sure am!
I accepted a job in another state and my wife and I are trying to relocate. The job will pay 55,000/year. I have poor credit though. My wife has a credit score of 656, and owns a condo where we are for which she still pays a mortgage. But she will be going to school in the fall, so she won't have any income. Under this scenario would we qualify for an FHA loan if she were a cosigner?
it doesn't look favorable to me, cd. if you rent for a while and you can improve your credit quickly, there's a better chance later on.
Does the non-occupant coborrower have to be a relative? Basically I was looking to have my future in-law sign with me since my credit is over 735, but my fiance's is not.
Hello, my current issue that I am having with USDA and FHA loan is even though I meet the required credit score. I only have 1 credit company reporting me. I have a great history on my current loans with not 1 late or missed payment. I have 2 current loans out with this company and 2 old loans I had with them. The credit score shows great payment history and they boast on my behalf. The company I have the great history with only reports to Transunion and none of the other credit companys. FHA and USDA require listing from 2. I have talked to equifax and they said they can not except non member trade data. Even my broker is upset he can not make this work cause my history is there. Is there any other options here other then using a co-signer with FHA? thanks in advance
My dad owns the house I live in and I rent from him. I was told before that since he owns it, he can't co-sign for me to purchase it(my score is only 585). Is this true?
Hi
Thanks in advance for spending time on this question. My wife and I currently have a home that we are trying to sell. It may take a while in this market. In the mean time we would like to purchase another property that is 165,000. We are going to put down $50,000. Our only debt is 2 car payments of $400 and $200 and our current mortgage payment. Both our scores are over 750. My wife is not working right now and my income does not meet the income to debt ratio. If I put my parents on as a cosigner what do you think the chances are of them approving me for a second home while the first is for sale. My parents have a 780 credit score and own their home free and clear. They have zero debt. Do you think I have a shot?
Thanks
Thanks in advance for spending time on this question. My wife and I currently have a home that we are trying to sell. It may take a while in this market. In the mean time we would like to purchase another property that is 165,000. We are going to put down $50,000. Our only debt is 2 car payments of $400 and $200 and our current mortgage payment. Both our scores are over 750. My wife is not working right now and my income does not meet the income to debt ratio. If I put my parents on as a cosigner what do you think the chances are of them approving me for a second home while the first is for sale. My parents have a 780 credit score and own their home free and clear. They have zero debt. Do you think I have a shot?
Thanks
cls, you will not be able to obtain fha financing, which allows for non-occupant coborrowers. in seeking conventional financing, however, you will find that you will have to qualify on your own, regardless of having cosigners. you're not in a good position either way.
to stace,
a non-occupant co-borrower does not have to be a relative. anyone who qualifies for a loan can co-sign. your future in-laws can also co-sign on the loan to help you qualify.
to jea,
it's strange that you have your credit report with only one credit bureau. the lenders would generally want to have a look at your three credit reports from the three different credit bureaus. they will then take your middle score in consideration while approving your loan. i think you should take help of a co-signer, if you want to get an fha loan. once you make your mortgage payments on the loan and have credit scores with all three of the bureaus, you can refinance solely in your name and remove the co-signer from the loan.
to sherri,
i think what you've been told is correct. your father is the owner of the house. you cannot use him as a co-signer to purchase the same house. however, he can co-sign on your loan, in case you want to buy a different house.
a non-occupant co-borrower does not have to be a relative. anyone who qualifies for a loan can co-sign. your future in-laws can also co-sign on the loan to help you qualify.
to jea,
it's strange that you have your credit report with only one credit bureau. the lenders would generally want to have a look at your three credit reports from the three different credit bureaus. they will then take your middle score in consideration while approving your loan. i think you should take help of a co-signer, if you want to get an fha loan. once you make your mortgage payments on the loan and have credit scores with all three of the bureaus, you can refinance solely in your name and remove the co-signer from the loan.
to sherri,
i think what you've been told is correct. your father is the owner of the house. you cannot use him as a co-signer to purchase the same house. however, he can co-sign on your loan, in case you want to buy a different house.
Hi,
I and my ex have an LLC that maintains and rents some rental property. We are cosignors on the mortgage for that rental property, but it is owned outright by our LLC. I have never purchased a home and should be technically eligible for an FHA loan. However, I am concerned that a lender will consider my co-signor status and will challenge whether my income is adequate on the basis that I should not be eligible in light of both mortgages at once. The LLC is currently self-sustaining,but it has shown a small loss over the years (rents were not sufficient to cover mortgage, repairs, and taxes, but now they are).
I and my ex have an LLC that maintains and rents some rental property. We are cosignors on the mortgage for that rental property, but it is owned outright by our LLC. I have never purchased a home and should be technically eligible for an FHA loan. However, I am concerned that a lender will consider my co-signor status and will challenge whether my income is adequate on the basis that I should not be eligible in light of both mortgages at once. The LLC is currently self-sustaining,but it has shown a small loss over the years (rents were not sufficient to cover mortgage, repairs, and taxes, but now they are).