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
Welcome timothysnow,
As far as I can understand, your in-laws can co-sign for your loan if they have a good credit score though they are on disability. The lender will consider their credit scores and your income while originating the mortgage for you.
As far as I can understand, your in-laws can co-sign for your loan if they have a good credit score though they are on disability. The lender will consider their credit scores and your income while originating the mortgage for you.
Hello Jessica,
I am trying to buy a house in San Antonio, TX, but becaue I don't live there, I cannot obtain an FHA loan, and I cannot pay the 20% down for a conventional second-residence loan. My mom can apply and I can cosign for her, but the problem is that she has an unsettled debt of about $4500, which she cannot pay. We are told by her credit union that unless she/we can settle that loan, we cannot do the non-occupying FHA loan. My credit rating is great. PLEASE HELP. Thanks.
I am trying to buy a house in San Antonio, TX, but becaue I don't live there, I cannot obtain an FHA loan, and I cannot pay the 20% down for a conventional second-residence loan. My mom can apply and I can cosign for her, but the problem is that she has an unsettled debt of about $4500, which she cannot pay. We are told by her credit union that unless she/we can settle that loan, we cannot do the non-occupying FHA loan. My credit rating is great. PLEASE HELP. Thanks.
S TX - will your mom occupy the home?
What type of debt is the $4,500? Charge-off? Collection? Judgment? Tax lien?
What type of debt is the $4,500? Charge-off? Collection? Judgment? Tax lien?
I am trying to qualify for an fha loan using a non occupant co borrower (father) on a two family house. can this be done?
GNF - yes it can, although some lenders may have overlay guidelines limiting it to just 1-unit, so your mileage may vary depending on which lender you are working with.
Shane- thanks fo ryour reply. Does it have to be 25% down or is it possible to use a co signer on a two family using 20% down?
Welcome - it can be as little as 3.5% down if you are able to qualify for that much of a mortgage amount. So it's certainly possible to do 20% down.
The only time that using a non-occupant co-borrower on FHA requires 25% down is when the non-occupant co-borrower is not blood related. Here is what FHA guidelines say:
[System detected duplicate content, converted into image. Thanks.]
The only time that using a non-occupant co-borrower on FHA requires 25% down is when the non-occupant co-borrower is not blood related. Here is what FHA guidelines say:
[System detected duplicate content, converted into image. Thanks.]
OK Great- I am waiting to hear back from my mortgage person to see if this was possible. Thanks for your time
My credit score is 590 and my wife's is 640. I would not be on the loan but we need my income to qualify. Do I have to have a 620 for a FHA loan since hers is decent. Her credit will probably be a 670 before we get the loan. I have paid of most negative accounts on my report but it hasn't raised my score yet. I have contacted the bureaus to remove these items so my fingers are crossed.
Welcome Guest,
Your wife should be the primary borrower for the mortgage and you can co-sign for the loan. If you co-sign for the loan, your income will be taken into consideration when the lender approves your wife for the loan.
Your wife should be the primary borrower for the mortgage and you can co-sign for the loan. If you co-sign for the loan, your income will be taken into consideration when the lender approves your wife for the loan.
would a layoff be extenuating circumstance to FHA and If I filed chapter 7 before the foreclosure which takes presidence
Hi Guest,
Once you file bankruptcy and if the court accepts your request, it will issue an automatic stay and your creditors will not be able to take any actions against you. This would be same in case of your lender as well. Thus, he would stop the foreclosure for the time being.
Thanks,
Jerry
Once you file bankruptcy and if the court accepts your request, it will issue an automatic stay and your creditors will not be able to take any actions against you. This would be same in case of your lender as well. Thus, he would stop the foreclosure for the time being.
Thanks,
Jerry
I have been qualified for a FHA loan. I am a first time homebuyer, and I have found a home to buy. My income level more than qualifies for the home. I make approx. $89K per year, house costs $235,000---so you can see I qualify.
Here is my predicament. My mortgage broker has now informed me that the underwriters are having a prblem with the type of job I have. My job is one of the Obama American Recovery and Reinvestment Act of 2009 positions, which have been classified as temporary. I have told the mortgage company that the jobs are approved thru 9/2011 and beyond--but this seems to be a hold up. I haven't officially been told to get a cosignor yet--I cannot believe that the mortage company is dropping this bomb on me this late in the game.
Question--
My sister has agreed to cosign. She does have a lot of bills, so her credit score is probably in the high 600's. Her house is worth almost $2 million, and she owes less than $375,000 on it---do you think she will be an OK cosignor??
Many thanks.
Here is my predicament. My mortgage broker has now informed me that the underwriters are having a prblem with the type of job I have. My job is one of the Obama American Recovery and Reinvestment Act of 2009 positions, which have been classified as temporary. I have told the mortgage company that the jobs are approved thru 9/2011 and beyond--but this seems to be a hold up. I haven't officially been told to get a cosignor yet--I cannot believe that the mortage company is dropping this bomb on me this late in the game.
Question--
My sister has agreed to cosign. She does have a lot of bills, so her credit score is probably in the high 600's. Her house is worth almost $2 million, and she owes less than $375,000 on it---do you think she will be an OK cosignor??
Many thanks.
Your sister will have to satisfy the required criteria set forth by the lender. It will depend upon the lender whether or not he would accept your sister as a cosigner for the loan. If her debt to income ratio is as per the lender's requirement, then she might be able to cosign for the loan.
Hello,
My question is as follows, we are young married couple looking to buy a home, My wife would be the borrower since her credit score is 750+ but her income is 45k/y I would like to cosign but I am going through bankruptcy and my credit is less than optimal. My income is 170k/y. Is there any way to just have my income and not my credit looked at?
Thank you.
My question is as follows, we are young married couple looking to buy a home, My wife would be the borrower since her credit score is 750+ but her income is 45k/y I would like to cosign but I am going through bankruptcy and my credit is less than optimal. My income is 170k/y. Is there any way to just have my income and not my credit looked at?
Thank you.