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
If my sister is a non Occupant co signer, can she in the future still purchase her own home without any problems?
Hi Lynn!
Welcome to forums!
Your sister might face issues in getting a loan unless the existing loan for which she is a co-signer gets paid off.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your sister might face issues in getting a loan unless the existing loan for which she is a co-signer gets paid off.
Feel free to ask if you've further queries.
Sussane
I want to help my son buy a house. He resently started a business and is not showing a income yet. Can I co sign on a fha loan for him so he can live in the house?
Hi Guest,
If you have the required credit score and income, you'll be able to co-sign on a FHA loan for your son. He will be able to stay in that property.
If you have the required credit score and income, you'll be able to co-sign on a FHA loan for your son. He will be able to stay in that property.
Blue, you might find a lender or two who hesitates because of the lack of income for your son, but I am in agreement with Adonis in thinking that you'd be able to assist based on your having solid credentials.
Hello! I am new to the forum and am looking for help.
We are an unmarried couple of 4 years and want to purchase a foreclosed home in our neighborhood that is going for $50k. He is owns a small carpentry business and has a credit score of 550 with a $6K debt that is actively being paid off and I am a fulltime student and SAHM with no current income, yet a credit score of 660.
I am wondering if we are even eligible for a FHA loan because of these circumstances...what are your thoughts/advice, etc.
Thank you!
We are an unmarried couple of 4 years and want to purchase a foreclosed home in our neighborhood that is going for $50k. He is owns a small carpentry business and has a credit score of 550 with a $6K debt that is actively being paid off and I am a fulltime student and SAHM with no current income, yet a credit score of 660.
I am wondering if we are even eligible for a FHA loan because of these circumstances...what are your thoughts/advice, etc.
Thank you!
My son wishes to buy his first property. He has a FICO score over 800, but no two year income history as he has just started his own business and was unemployed prior to that. I have a FICO score of about 800 and income. I also have 6 rental properties and 5 have mortgages, besides my own home.
Can I cosign for him to get a mortgage? Would this be as a cosigner or a coborrower? Would having over 4 mortgages be a problem?
If
Can I cosign for him to get a mortgage? Would this be as a cosigner or a coborrower? Would having over 4 mortgages be a problem?
If
(See previous posting) If under the previous scenerio, a FHA loan won't work, could I cosign for him on a conventional loan?
Hi Kris,
Both of you can jointly apply for a FHA loan. Though your partner has a business, with a credit score of 550, he won't be able to qualify for a FHA loan alone.
To Margaret,
As you already have 5 mortgages in your name, the lenders may not allow you to be a cosigner or a co-borrower. You may contact the local conventional lenders and check out if they can help you in this matter.
Thanks,
Jerry
Both of you can jointly apply for a FHA loan. Though your partner has a business, with a credit score of 550, he won't be able to qualify for a FHA loan alone.
To Margaret,
As you already have 5 mortgages in your name, the lenders may not allow you to be a cosigner or a co-borrower. You may contact the local conventional lenders and check out if they can help you in this matter.
Thanks,
Jerry
Kris - find a local lender who has expertise in helping those with troubled credit histories; find out what is needed to have your partner to do in order to boost his score as quickly as possible; if his business is showing losses, by the way, that's going to create another set of issues for you. You didn't address that, but it's something to pay close attention to.
At this point, Jerry's analysis is right on - a 550 score isn't going to be very beneficial to you in trying to purchase.
Margaret, I agree that the number of mortgages you hold may be a stumbling block, but it's worth your checking into with an FHA lender Your son's employment situation isn't beneficial for him, but your co-signing, if they'll allow you, is definitely helpful. There are occasions when a 2-year history isn't necessary, but that's no guarantee either. Ask around locally, and you'll have a better idea of what you may be able to do.
At this point, Jerry's analysis is right on - a 550 score isn't going to be very beneficial to you in trying to purchase.
Margaret, I agree that the number of mortgages you hold may be a stumbling block, but it's worth your checking into with an FHA lender Your son's employment situation isn't beneficial for him, but your co-signing, if they'll allow you, is definitely helpful. There are occasions when a 2-year history isn't necessary, but that's no guarantee either. Ask around locally, and you'll have a better idea of what you may be able to do.
Hi.. Newbie here.
My wife and I make a Combined 104K and house is valued at 350K with no mortage. Our credit scores are below 550 however. My daughter though has a Score of 700. If my daughter co-signs Would we qualify for a FHA loan?
Thanks
Bennett
My wife and I make a Combined 104K and house is valued at 350K with no mortage. Our credit scores are below 550 however. My daughter though has a Score of 700. If my daughter co-signs Would we qualify for a FHA loan?
Thanks
Bennett
Not very likely, Bennett; most lenders are looking for a credit score quite a bit higher than your 550 scores. Adding a 700 score doesn't eliminate yours from consideration.
With that in mind, there are, apparently, lenders whose process doesn't include a minimum score. I just read about one in Kentucky yesterday from another poster - sorry but I can't recall in what forum or any of the details. They do exist, but it's not easy finding them. That proverbial needle in the haystack is probably showing up more often than that kind of lender.
With that in mind, there are, apparently, lenders whose process doesn't include a minimum score. I just read about one in Kentucky yesterday from another poster - sorry but I can't recall in what forum or any of the details. They do exist, but it's not easy finding them. That proverbial needle in the haystack is probably showing up more often than that kind of lender.
i was preapproved for an fha loan with my mom as the cosigner. found a hud home that i absolutely love . but now im told that there is a law that says an fha loan that has a cosigner has to be leaving in the hud home as well. is this true?
Hi renee,
I haven't heard that it's mandatory for the co-signer to stay in the home if you're taking out an FHA loan. You should speak to the other FHA lenders of your area and check out if they can help you with a loan. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out if they can help you with a loan.
I haven't heard that it's mandatory for the co-signer to stay in the home if you're taking out an FHA loan. You should speak to the other FHA lenders of your area and check out if they can help you with a loan. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out if they can help you with a loan.
mom and i want to buy a 2 flat home my credit is fair hers is bad ,my income is under 30,000 hers is over 30,000,is there any way we can qualify for an fha loan