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
My fiance has a credit score of 732, good income to debt ratio. he's trying to get a FHA mortgage for 85000. the problem he's running into is that he's being told he doesn't have enough credit history. he's been unsuccessful in finding alternative credit options; ie rent, no cell phone, etc. what are some of his options? Would a cosigner help in his situation since the issue is having enough open credit lines?
Oh the cosigner would be his father. he's got good credit, good job and would be willing to help.
Oh the cosigner would be his father. he's got good credit, good job and would be willing to help.
I wish to co-sign for son and obtain an FHA 203B loan. I am retired and have income from investment properties. I have 9 apartments and have owned all of them for many years. I have no FHA loans. The lender is telling me I cannot co-sign because there is a limit of 4 properties. Can you verify this.
Hi!
Welcome to forums!
To arf,
A co-signer can help your fiance's situation. The co-signer's credit record will be taken into consideration while the lenders give loan to your fiance.
To John,
It is true that there is a rule related to 4 properties. You cannot qualify to get a mortgage if you already have 4 properties.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To arf,
A co-signer can help your fiance's situation. The co-signer's credit record will be taken into consideration while the lenders give loan to your fiance.
To John,
It is true that there is a rule related to 4 properties. You cannot qualify to get a mortgage if you already have 4 properties.
Feel free to ask if you've further queries.
Sussane
We want a home in Arkansas and an FHA loan. My wife is retired and will occupy. I will retain my home (non-FHA loan) and continue working in another state. Can I be a non-occupying co-borrower? Although not a blood relative, I have a long-standing substantial relationship with my wife.
P.S. If I can't I believe it's illegal discrimination under fair lending laws on the basis of marital status.
P.S. If I can't I believe it's illegal discrimination under fair lending laws on the basis of marital status.
Hi Robert,
You can apply for the mortgage as a non-occupying co-borrower. Your wife and you should contact the local lenders of Arkansas and start applying for a mortgage. I don't think there will be any problem.
Thanks
You can apply for the mortgage as a non-occupying co-borrower. Your wife and you should contact the local lenders of Arkansas and start applying for a mortgage. I don't think there will be any problem.
Thanks
In order to qualify for an FHA with 10% down, what is the current credit score requirement for all borrowers/signers? Thanks!
Hi Kathryn!
Welcome to forums!
In order to get a FHA loan, you should have a credit score of around 600-620.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In order to get a FHA loan, you should have a credit score of around 600-620.
Feel free to ask if you've further queries.
Sussane
Hi Jessica:
I'm an Independent Consultant with a Business and pay myself a salary. I take deductions thru my business and Pay Business Taxes and Individual Taxes. The company that I've been working with says my DTI is too high on my individual income. But as an Independent Cons., I make well over 100K. they do not count my gross from my business.
I'm an Independent Consultant with a Business and pay myself a salary. I take deductions thru my business and Pay Business Taxes and Individual Taxes. The company that I've been working with says my DTI is too high on my individual income. But as an Independent Cons., I make well over 100K. they do not count my gross from my business.
You'll have to go with what your lender says. Nevertheless, you can contact other local lenders and check out how they will calculate the DTI for you.
My brother will be my co-signer on my first home. He plan to also purchase a duplex or 4-plex (rental properties) of his own after six months.
Will both of us be able to qualify for the 1st time home buyer program?
Will both of us be able to qualify for the 1st time home buyer program?
Hi cms!
Welcome to forums!
You and your brother will be able to qualify as a first time home buyer when you buy your home. However, when your brother buys his own home, he won't qualify as a first time home buyer as he will already own a part of your property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You and your brother will be able to qualify as a first time home buyer when you buy your home. However, when your brother buys his own home, he won't qualify as a first time home buyer as he will already own a part of your property.
Feel free to ask if you've further queries.
Sussane
My husband and I want to buy a house but are only able to use my credit for the FHA loan. My mother in law is recently retired and willing to sign as a co-signer. Will this help with the amount of loan I can qualify for since my understanding is I will not be able to use my husband's salary as income since he cannto be on the loan.
Hi Jenna,
If your mother-in-law has a good credit score, then it will help you in getting a loan if she co-signs for it.
Take care.
If your mother-in-law has a good credit score, then it will help you in getting a loan if she co-signs for it.
Take care.
Yes me and my wife are looking to get a loan to build a home. Her name will not be on the loan. We own the property were we want to build my average credit score between the three is 641. Can i get a loan aon my own or do i need a cosigner.
Welcome john,
With a credit score of 641, you can qualify for a FHA loan. However, if you want to get a conventional loan, then you will have to take the help of a cosigner who has a good score – around 700-720.
With a credit score of 641, you can qualify for a FHA loan. However, if you want to get a conventional loan, then you will have to take the help of a cosigner who has a good score – around 700-720.