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
Another point is we want to pay off NJ mortgage w/this loan and get great rates on our primary residence.The rate difference is 6.5% to 4.37% which will save us $3-400/ month. tx
Hi Jack,
If there is a rule in PA which states that you will have to stay in the property in order to take out a mortgage on it, then I'm afraid your son will not be able to cosign for the mortgage. However, you should speak to some other lenders of your area and check out what they have to say in this matter.
Thanks,
Jerry
If there is a rule in PA which states that you will have to stay in the property in order to take out a mortgage on it, then I'm afraid your son will not be able to cosign for the mortgage. However, you should speak to some other lenders of your area and check out what they have to say in this matter.
Thanks,
Jerry
my blood sister was the co-borrower on my home property because she was living there. after 8 years she moved out for 3 years she has not contributed and has done all she can do to let me loose my home .I got a modification she called the loan company and they rescinded the modification .I refile for the modification they want her to sign she will not I need to keep my house from foreclosure . what can I do? Thanks
So is it cut and dry if I have a good candidate to cosign for me and a have a couple judgements on my credit report does that disqualify me immediately?
So is it cut and dry if I have a good candidate to cosign for me and a have a couple judgements on my credit report does that disqualify me immediately?
Welcome MARJORIES,
As your sister is a co-borrower of the mortgage, she will have to sign the loan modification documents in order for you to get it. You'll have to negotiate with her and ask her to agree to it so that you can save the property.
As your sister is a co-borrower of the mortgage, she will have to sign the loan modification documents in order for you to get it. You'll have to negotiate with her and ask her to agree to it so that you can save the property.
I have been qualified to purchase an affordable housing unit. Is it possible to have a non occupant coborrower in a transaction like this? Will their income be counted? If so, that would put me over the income requirements.
Thanks!
Thanks!
I have medical bills on my credit, but other than that I have decent credit. Does FHA look at the medical? If so, would a co-signer be enough to get me a loan?
Hi DNap,
A non-occupant co-borrower can apply for a mortgage. Now, it will be the lender's discretion whether or not he will give him/her a mortgage. If the non-occupant co-borrower gets a mortgage, then his/her income can be taken into account.
To jwishing,
All the delinquent accounts will be taken into consideration when you apply for a FHA loan. You should try and pay off as much debts as possible and then apply for the mortgage.
A non-occupant co-borrower can apply for a mortgage. Now, it will be the lender's discretion whether or not he will give him/her a mortgage. If the non-occupant co-borrower gets a mortgage, then his/her income can be taken into account.
To jwishing,
All the delinquent accounts will be taken into consideration when you apply for a FHA loan. You should try and pay off as much debts as possible and then apply for the mortgage.
my sister is wanting to be a co-borrower on a house with me. i am recently divorced and i can not support a new loan while my name is still on my x'wife's house (x has till end of 2011 to refinance). my sister rents and has no desire to ever own a house. she makes a significant income which should be more than enough to qualify us. my question is this... i am being told we will have to come up with a minimum of 25% down because it will be considered an "investment" property since my sister will not be living with me. is there anyway around having to put down 25%? i am looking at a loan of $150,000.
i have declared bankruptcy, can my parents still cosign?
Hi cmhaile,
The lenders normally require 20% down payment in order to offer you a mortgage. I will suggest you to contact other local lenders of your area and check out if they can help you in getting a mortgage at a lower down payment.
To dee,
Unless your bankruptcy filing is discharged, it's better to not go for any mortgage. None of the lenders will be ready to give you a mortgage, though you have a cosigner.
Thanks
The lenders normally require 20% down payment in order to offer you a mortgage. I will suggest you to contact other local lenders of your area and check out if they can help you in getting a mortgage at a lower down payment.
To dee,
Unless your bankruptcy filing is discharged, it's better to not go for any mortgage. None of the lenders will be ready to give you a mortgage, though you have a cosigner.
Thanks
My fiance and I are pre-approved for an FHA mortgage but I'm still a bit nervous about us qualifying. We both had credit scores around 650, want to borrow 154K, and our yearly income is around 75K, excluding any bonuses. His father has offered to co-sign if needed. He has an excellent credit score, around 800, owns a home (already paid off, so does not have a current mortgage), but only makes around 29K a yr. Would he be able to co-sign if needed?
Hi Jacklyn,
As far as I can understand, if needed, your finance's father will be able to co-sign for the mortgage.
As far as I can understand, if needed, your finance's father will be able to co-sign for the mortgage.
We are looking to purchase a new home. I filed for a personal Chapter 7 (finalized 9/09). I also refiled my business in 7/09. Wife not involved in BK or New Business (silent partner). We want get a mortgage for $200K on $300K property and wife makes about $75K. Told my income doesn't count for qualifying due to 2 years wait period on BK and new buisness. I also make $36K grosds on pensions and minimum of $50K in my business. They suggested the NOCB as option. Have one but he wants to knwo what the impact on his credit might be should he want to borrow money say next year? Not sure what to tell him. Can You hlep?