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
brittany, there are lenders in the nation who will deal with situations like yours, with poor credit scores. you may have to do an internet search to find them, though...most lenders are like the ones your fiance spoke to; needing 620 minimum scores. cosigners won't override a score requirement.
when you say judgments/collections explain in detail
Hi cconner,
When a lender files a lawsuit and gets a court order against the borrower for the non payment of the mortgage dues it can be termed as a judgment.
Many a times, due to the non-payment of dues, the lenders sells off the loan account to collection agency. This means that the loan has been sent to collections.
When a lender files a lawsuit and gets a court order against the borrower for the non payment of the mortgage dues it can be termed as a judgment.
Many a times, due to the non-payment of dues, the lenders sells off the loan account to collection agency. This means that the loan has been sent to collections.
Is it possible to get a loan approved if I can little or no income, but I have a cosigner?
my fiance and I are looking at buying a house at a GREAT value, and would qualify for the 8K tax credit so we wanna move fast. The problem is...I only make 12K right now, but should be making 30K soon. She is just graduating from Grad school and should be able to get at least 30K a year as well. We do NOT have the 2 year income history though. My dad is a doctor and has great credit and great income and he has offered to co sign with us. But I have talked with one mortgage company offering FHA loans and was told that I would not qualify because of not meeting the income history requirements. Since he owns a house already, the said that they only option was for him to qualify on his own, but he would have to pay 20% down...any ideas? we can pay around 10% but that is all we would be able to afford
To T,
If you have a low income, then you can qualify for a loan with the help of a cosigner. However, if you've no income, then lenders will not be ready to give you a loan though you've a cosigner.
To Justin,
If your father co-signs for the property, then you won't be able to get the first time homebuyer's tax credit. If you cannot offer the required income history and down payment, you won't be able to qualify for a loan.
If you have a low income, then you can qualify for a loan with the help of a cosigner. However, if you've no income, then lenders will not be ready to give you a loan though you've a cosigner.
To Justin,
If your father co-signs for the property, then you won't be able to get the first time homebuyer's tax credit. If you cannot offer the required income history and down payment, you won't be able to qualify for a loan.
my mother in law wants to help me get a home in Georgia, she said she will cosign. my credit score is 548 hers is good but since she has other loans on her credit and not enough income i was told it wouldn't work since they were going on her credit only. We really need my income but the lender said my score was too low...is this true?
Hi ther. okay so heres my scenerio.
Im trying to purchase a home. 1099 employee with tax returns for 2009 at about 56k. 2008 as a w-2 employee about 19k. My credit score is around 680. Apparently the bank need me to have a co-signer. My father made about 70K but his score is about 495 (Cosigned for my Iiddiot brother who paid late a few times.) Could I still qualify?
Im trying to purchase a home. 1099 employee with tax returns for 2009 at about 56k. 2008 as a w-2 employee about 19k. My credit score is around 680. Apparently the bank need me to have a co-signer. My father made about 70K but his score is about 495 (Cosigned for my Iiddiot brother who paid late a few times.) Could I still qualify?
Hi clairece,
It is true that if your mother-in-law has other debts to satisfy, then your lender will not allow her to cosign for your loan. If you do not have the required credit score, then you won't be able to qualify for a loan. You can check out if you can get any other cosigner who can help you in getting a mortgage.
Hi Robert,
If the cosigner has negative items on his credit report, then the FHA lenders will not let him cosign for the loan. You've mentioned that your father has late payments mentioned on his credit report. This may affect his eligibility for cosigning the loan.
Thanks
It is true that if your mother-in-law has other debts to satisfy, then your lender will not allow her to cosign for your loan. If you do not have the required credit score, then you won't be able to qualify for a loan. You can check out if you can get any other cosigner who can help you in getting a mortgage.
Hi Robert,
If the cosigner has negative items on his credit report, then the FHA lenders will not let him cosign for the loan. You've mentioned that your father has late payments mentioned on his credit report. This may affect his eligibility for cosigning the loan.
Thanks
My Husband and I just short saled our house, and our credit scores are now not so good (low 600s). My father who owns his house and has excellent credit is willing to cosign for us on an FHA loan. My husband and I make enough money to buy a house on our won, but because of the recent short sale, and our credit being kind of bad, I think it will be very difficult for us to get approved on an FHA loan by ourselves.
We have about $25K for a down payment. What are our chances of my father being able to cosign and help us get approved for an FHA loan?
You advice is much appreciated.
We have about $25K for a down payment. What are our chances of my father being able to cosign and help us get approved for an FHA loan?
You advice is much appreciated.
Though your father cosigns for the loan, I don't think you would be able to qualify for a loan. This is because, after a short sale, you will have to wait for 2-3 years in order to get a FHA loan.
Hi Jassica,
I am a student with $8000 taxible income for the last two year. Now I am
accepted by Tufts Medical school as a PH.D student with full tuition wave plus
$30K stipend. Therefore, I want to be a home owner. The property I want to
buy is a condo in MA. The final purchasing price is $386,300. I will put 20%
down and want to borrow $306,640 from bank. My question as follow:
1. The closing date of the property set on May 17. But untill September I have
not able to get my first pay check. However, as I said before I do have some income in the last two years. In this case, do I qualified to be a FHA loan borrower?
Thank you so much for your help
Brian
I am a student with $8000 taxible income for the last two year. Now I am
accepted by Tufts Medical school as a PH.D student with full tuition wave plus
$30K stipend. Therefore, I want to be a home owner. The property I want to
buy is a condo in MA. The final purchasing price is $386,300. I will put 20%
down and want to borrow $306,640 from bank. My question as follow:
1. The closing date of the property set on May 17. But untill September I have
not able to get my first pay check. However, as I said before I do have some income in the last two years. In this case, do I qualified to be a FHA loan borrower?
Thank you so much for your help
Brian
As you do not have any income at present, I don't think you would qualify for a FHA loan. Have you informed your lender that you will get your pay checks from September onwards?
brian, i think you're far exceeding your abilities to try to purchase a property that's selling for ten times your stipend. lenders don't ordinarily consider a stipend in calculating what you'll qualify for, either; and your inability to obtain a paycheck in the last 6+ months isn't working in your favor either. are you using a cosigner for this proposed purchase? and have you already scoped out the lending territory and feel certain you'll actually obtain a loan?
Hi Jasmine and qmakerley,
As I said before I do have some income right now (just as previous two years each year I earned about $8000+) but I don't know what is the minimun amount of the income that meet the requirement to be a FHA loan borrower.
My parents will be my co-signers. Although during the period from closing to September I have no fixed income but they can help me out. After September, I will get the monthly pay from stipend. As I understand the purpose of FHA loan is simply designed for people who have less income/credit. The button line is that my parents are willing to tak their resposibility over, So I don't understand why I am not be qualified. Also I will find a roommate to share the cost with me. So any one could let me know with what amount of the actual minimun anual income that a person can be qualified as FHA loan borrower? For example, right now I do earn more than $700 per month.
Thanks everyone for all your help
Bian
As I said before I do have some income right now (just as previous two years each year I earned about $8000+) but I don't know what is the minimun amount of the income that meet the requirement to be a FHA loan borrower.
My parents will be my co-signers. Although during the period from closing to September I have no fixed income but they can help me out. After September, I will get the monthly pay from stipend. As I understand the purpose of FHA loan is simply designed for people who have less income/credit. The button line is that my parents are willing to tak their resposibility over, So I don't understand why I am not be qualified. Also I will find a roommate to share the cost with me. So any one could let me know with what amount of the actual minimun anual income that a person can be qualified as FHA loan borrower? For example, right now I do earn more than $700 per month.
Thanks everyone for all your help
Bian