Can you use a cosigner to qualify for an FHA loan?

again, brian, i will ask if you have actually received confirmation that you have a chance at qualifying for the loan you propose. it's ten times your stipend amount, as i noted. roommates are not considered as stable income sources, either, no matter the program.

i truly hope your parents fully understand that they will be 100% liable for the loan you propose.

if you haven't spoken to a lender in your area about this situation, you are well-served to do so right away.

Hello I make approximately 60K a year and have a credit score of 620. I was initially told by my lender that I qualify for an FHA loan in the amount of 250K. Today I faxed over my tax returns, and after he looked at my taxes he informed me that I no longer qualify for the loan without a cosigner because I have over $1200 in business related tax deductions, which lowers my income. I am very confused? Is it true that deducting your mileage on your taxes can reduce your chances of qualifying for a loan?

yes, confused, that's quite true. lenders will review your schedule c (i assume) and look at the bottom line, not the gross income reported. the only addition to that bottom line is for depreciation that you may have claimed. that can be added and a recalculation done to determine your qualifying income.

i have to assume that your lender is on the same page as everyone else, and that the proper calculations were made.

I got a credit score of a 580 and had some collections ,but now i have pay them off my score have not change yet what do i need to do so i can get a 620 so i can get ahome loan

You will have to pay off the negative items that are mentioned in your credit report. Once you pay off the negative items, it will have a positive effect on your credit report and help you in increasing your credit score.

Guest, scores are not instantaneously changed upon payment of debts as you noted. You've got to have a variety of things that are working in your favor at the same time, for a quick increase.

Look at the balances on your accounts in relation to the credit limits. If they are higher than one-third, and you can do so, pay them down to as low as you can (as quickly as you can). Avoid applying for credit anywhere, as new inquiries will also hamper you. Do you have any other derogatory items? If you've been late on payments with other creditors, for example, you'll have to overcome that for a month or two or more with timely payments. Then you'll see a change in your score in your favor. Be patient - remember that Rome wasn't built in a day; nor will your credit bounce skyward in a day.

Hi. I am a prospective first-time home buyer, but I have a very small amount of credit (no debt, however). I read above that a person with poor credit can get approved if he or she has a cosigner. If I have a parent cosign with me for the loan (they have very good credit) can I get approved for the loan? The houses that I am looking at are a little less than $120,000.

guest, someone with poor credit still has to meet a specific threshold, such as a score of at least 620. you didn't mention your score, but if you have a very small amount, i suspect it's not particularly high. at any rate, if you meet a lender's guidelines for credit score, then having a parent as cosigner ought to be an enhancement that would make you eligible for the loan you seek.

I have NEVER owned a home and would normally be elidgable for a FHA loan. However, my husband, owns the home we are currently living in. Does that now make me inelidgable for the FHA loan?

Hi ddt,

If your name is not on the mortgage of your husband's property, then you would be eligible for qualifying for a home loan - be it conventional or a FHA loan. In order to get a FHA loan, you would require a credit score of 620 and a good credit record. There shouldn't be much negative items on your credit report. Apart from this, you should have a fair income in order to get qualified for a mortgage.

Take care.

I have a low credit score of like 575 and the banker said I would need a co signer, my mom has excellent credit of like 750 will she be able to help me out? The loan is for around 155,000. I only only make around 27,000 a year and my mom makes around 31,000 a year. She also has a mortgage of her own and her payments are about 1100 a month and I know she has never paid late on any of her credit cards or anything like that. I just need to know if there is any hope for me?

ly, i have to think that your combined income of $58K might be a shade too low to do the job here. after all, your mom's mortgage payment represents about 40% of her gross monthly income, and i can only imagine that your proposed mortgage payment will probably exceed $1000 per month as well. having someone cosign is a marvelous idea, for you, though dangerous for anyone else. if that payment, for example, is $1000 even, that's going to represent almost 50% of your gross income on a monthly basis, and that's simply way too high.

i'm not saying that a lender won't make the loan to you with your mom on the deal, but i am saying that you ought to re-think things. there's no sense in getting in over your head. one little slip-up could have devastating results, and your mom's budget isn't really going to allow her to bail you out if you need it.

I am wondering where to start...wanting to buy a home, and have bad credit. However have cash to pay most of the loan, boyfriend parents are willing to pay large amount.

Rene, if you wish to pay the full price of a home in cash, it won't matter what your credit score is. If you want a mortgage, it will make a difference, though. You'll need to take care of that bad credit in order to obtain a mortgage. One way to do that is to use some of that load of cash you have stowed away to pay off the debt and get to work on repairing your credit and increasing your score. You didn't address that as an option, but I suppose it's a matter of which is more important - the house purchase or eliminating the credit issues.

If you and your boyfriend plan to take title to a home together, you both need to take extreme care to ensure that each of you is protected in the event of a parting of the ways. And that's not just a split, but it could also include a death of one. Get a good lawyer and talk about what you need to do for protection for each of you.

My husband and I currently rent and the owners need to sell. They have given us the first option to purchase. We have agreed on a purchase price and have determined through a lender that because of our income we only qualify for an FHA loan and will need a co-signer and my parents are concerned about how it will affect their ability to get loans/ credit should they need too in the next few years. Can someone tell me how it truly will affect them? They do still have a mortgage and then off course if they add our mortgage to their credit does it show they have hundreds of thousands of dollars of debt in mortages?? We live in CA and I know they owe about $200k on their house and our loan is for $400k.

Thanks for the insight!