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
Hi ren,
If your mother co-signs for the loan, then her income and your credit score will be taken into consideration by the lender. You should speak to the lender in this regard and sort out the matter.
Thanks
If your mother co-signs for the loan, then her income and your credit score will be taken into consideration by the lender. You should speak to the lender in this regard and sort out the matter.
Thanks
Hello Mortgage pros...
We had my wifes dad finance a home for us about 18 months ago. We put the money down and we make the mortgage payment BUT the house is in her dad's name. We are not on the note. We thought this was the only way to go (based on work, credit, income, etc.). HOWEVER, we would now like to purchase the home and have it in our name through fha. We applied and have an issue with my wifes credit...SHE LITERALLY has no score. My score is in the mid 600 range. So, could we utilize my wife's dad as a cosigner and get the home in our name? Would this also allow us to rebuild our credit so that in a year or two we could then finance the home through fha in a year or two taking him off as cosigner? Thanks for the advice
We had my wifes dad finance a home for us about 18 months ago. We put the money down and we make the mortgage payment BUT the house is in her dad's name. We are not on the note. We thought this was the only way to go (based on work, credit, income, etc.). HOWEVER, we would now like to purchase the home and have it in our name through fha. We applied and have an issue with my wifes credit...SHE LITERALLY has no score. My score is in the mid 600 range. So, could we utilize my wife's dad as a cosigner and get the home in our name? Would this also allow us to rebuild our credit so that in a year or two we could then finance the home through fha in a year or two taking him off as cosigner? Thanks for the advice
hi jeff and deb,
if your wife's dad has a good credit score and income, then he can cosign for you and you will be able to get a mortgage in order to get the home in your name. later on, once you have equity in your property, you can again refinance the loan in order to remove your wife's father as the co-signer of the property.
if your wife's dad has a good credit score and income, then he can cosign for you and you will be able to get a mortgage in order to get the home in your name. later on, once you have equity in your property, you can again refinance the loan in order to remove your wife's father as the co-signer of the property.
Me and my husband almost have a 640 on score. His dad said that he would cosign for us. who has perfect credit. The loan officer told me that if he did that it would be a investment prop. for his dad and we would have to put 20% down.
Hi Holly,
With a credit score of 640, you and your husband can apply for a FHA loan. In such a situation, you won't require the help of a co-signer and you will be liable for paying a down payment of 3.5% - 5%.
Thanks
With a credit score of 640, you and your husband can apply for a FHA loan. In such a situation, you won't require the help of a co-signer and you will be liable for paying a down payment of 3.5% - 5%.
Thanks
Jeff and Deb you'll have some difficulty with trying to have Deb's dad cosign inasmuch as he's the seller of the property as well. That's not to say that a lender won't do it, but it's going to be a bit complicated. I still suggest that it's worth pursuing, though.
Also, if you're seeking FHA financing, no score isn't necessarily going to disqualify someone from being a borrower. FHA guidelines allow for alternative tradelines to be developed to build a credit background...now the trick, of course, is to find a lender who'll work within those guidelines. Not that many are likely to do so, I suspect.
And to Holly...I agree with what Adonis is telling you...FHA loans allow for you to borrow with a cosigner, so shop around for a lender who offers that financing.
Also, if you're seeking FHA financing, no score isn't necessarily going to disqualify someone from being a borrower. FHA guidelines allow for alternative tradelines to be developed to build a credit background...now the trick, of course, is to find a lender who'll work within those guidelines. Not that many are likely to do so, I suspect.
And to Holly...I agree with what Adonis is telling you...FHA loans allow for you to borrow with a cosigner, so shop around for a lender who offers that financing.
We recently(6yrs ago) gave up our house in a area that was demed a geo hazard area, La Conchita CA. Allowing the bank to forclose and subsuquently forced us into bankruptcy. My fico score is currently at 600 and our DTI would be below 35% with the home we have in mind. Would a strong cosigner help us qualify for a FHA loan.
Hi Johnny,
Your query has been answered in the given page:
http://www.mortgagefit.com/predeal/about51873.html#212343
Please take a look at it. I hope it will help you.
Thanks
Your query has been answered in the given page:
http://www.mortgagefit.com/predeal/about51873.html#212343
Please take a look at it. I hope it will help you.
Thanks
my credit score are 598 but my husband are 620 but he needs more income to qualify for the loan this means that i need to get my credit scores up to be put on the loan
Hi sandra!
Welcome to forums!
You should have a credit score of 620 minimum in order to add your name to the mortgage.
Sussane
Welcome to forums!
You should have a credit score of 620 minimum in order to add your name to the mortgage.
Sussane
Son does not have any negative items on credit. He was just honorably discharged from the Army & will be Commencing school. Parentes desire to purchase modest home ($120K) as co-signers with an FHA loan. Parents credit is acceptable. Please advise.
Thank you very much for your assistance on this situation.
Ruby
Thank you very much for your assistance on this situation.
Ruby
Hi rubydistefano,
The parents should contact local lenders and apply for a mortgage. I don't think they will face issues in getting a mortgage. However, it will be difficult for the son to get a mortgage alone.
Thanks,
Jerry
The parents should contact local lenders and apply for a mortgage. I don't think they will face issues in getting a mortgage. However, it will be difficult for the son to get a mortgage alone.
Thanks,
Jerry
Ruby, will your son have any income to bring to the table, or is he purely a student? That, I believe, will impact many lenders' decisions as to whether they'd allow him to borrow with you, his parents, as cosigners.
Clearly, it's worth your while to begin to shop around, to see if there's a lender willing to handle such a transaction.
Clearly, it's worth your while to begin to shop around, to see if there's a lender willing to handle such a transaction.
I am applying for a fha loan for my lst house. last year my income tax report was only 9900, the year before i did not file taxes since i made 1100 as self employed head of household. my credit score is 785 and my brother is going to cosign he has great credit and has an income of more than 400,00. would i still be able to get a fha loan and for about how much. i am thinking of buying a home at between 90,00 and 100,00 with a 30 year mortgage thank you
Hi annie,
As your cosigner has a good income and credit score, you will be able to get a FHA loan. You can check out the given calculator in order to find out how much loan you can get: http://www.mortgagefit.com/calculators/howmuch-borrow.html .
As your cosigner has a good income and credit score, you will be able to get a FHA loan. You can check out the given calculator in order to find out how much loan you can get: http://www.mortgagefit.com/calculators/howmuch-borrow.html .