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
You really need to verify with the most recent FHA guidelines. Things change and this message thread was started years ago. The best thing is to speak with a qualified loan officer and get a Mortgage Rate Quote with the FHA scenario you are referring to.
[External linking deleted as per forum rules. Thanks.]
[External linking deleted as per forum rules. Thanks.]
I keep reading that to get a non-occupant co-borrower off of an FHA loan I have to refinance, but why can't I just assume the loan from her (assuming I credit qualify, of course)? Is there a reason that can't be done? I'm asking b/c I'm considering this type of loan, but I don't want to be in the situation in a few yrs where I am able to qualify on my own, but interest rates have gone up and I am left with either leaving her on the loan, or paying a much higher rate.
Thanks
Thanks
can my brother in law co sign on my fha loan and buy a movilhome at the same time or later,,,... thanks for your help....
Hi pablo!
Welcome to forums!
If your brother has the required credit score and income, he will be able to qualify for a loan in order to buy a mobile home.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your brother has the required credit score and income, he will be able to qualify for a loan in order to buy a mobile home.
Feel free to ask if you've further queries.
Sussane
can you have a cosigner with good credit but has no job because they are going to school?
Hi kelly,
It will be the lender's discretion whether or not he will consider only the credit score of the co-signer and let him cosign for you.
Thanks
It will be the lender's discretion whether or not he will consider only the credit score of the co-signer and let him cosign for you.
Thanks
fha loan, how high can your overalll debt to income be? my credit score is about 680, no late payments,same occapation for 17 years,[ school canselor], I!ve been in my home for 7 years. MY compinsaten factors are lower payment by abouy $400, have a reserve of about $11000,have additional $1000 per month from my husband [soc seq], I cant use him on my loan because his score is low[525], and judgements. thanks, Darious/Elaine
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
My fiance and I have 2 children together. He works and makes $55k/yr. He also gets per diem between 800-1200/mth. He has been at his job for 5 years. Due to 8 mos of layoff, his credit took a hit. Last I checked when we were approved for a 9k car loan 7mos ago his credit was 550. I believe it may have gone up a little since then since we have been paying all of our bills and loans. I don't work and don't have credit to contribute. We would like to apply for a FHA loan for 33k for a house. I have been researching and know that I read that it is up the the lender regarding the credit score but that the base is 550. My mother is retired and receives income from both social security and her 401k. If we use her as a cosigner what are our chances of obtaining a loan? I don't think it would be hard to prove the relationship between my mother and my fiance since we have 2 children together.
Hi DB!
Welcome to forums!
As far as I know, in order to qualify for a FHA loan, the borrower should have a credit score of 620. You should ask your fiancé to find out if he has this required credit score. If yes, then he himself will be able to qualify for a FHA loan without any cosigner.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, in order to qualify for a FHA loan, the borrower should have a credit score of 620. You should ask your fiancé to find out if he has this required credit score. If yes, then he himself will be able to qualify for a FHA loan without any cosigner.
Feel free to ask if you've further queries.
Sussane
Would a six-year close business relationship qualify as a long-standing substantial relationship?
Hi!
Welcome to forums!
Well. I don't think a business relationship can qualify for a substantially long relationship. Nevertheless, you can have a word with an attorney and take his opinion in this matter.
Feel free to ask if yo further queries.
Sussane
Welcome to forums!
Well. I don't think a business relationship can qualify for a substantially long relationship. Nevertheless, you can have a word with an attorney and take his opinion in this matter.
Feel free to ask if yo further queries.
Sussane
I have 2 recent negative reports to the credit bureau for delinquent mortgage payments for my Nov and Dec 2011 payments. I made payment arrangments with the mortgage company but decided to catch the loan up and did not go through with the arrangments made. The loan was completely current as of January 2012. I recently married and am in the process of buying another home with my husband. The two negative reports to the credit bureau caused my scores to drop and we now do not qualify for the loan. Can my mother co-sign on the loan for us? I was told that I could not be on the loan at all because of the 2 recent negative reports to the credit bureau. Our lender said that my husband would have to be the only one on the loan and he would have to get a relative to co-sign. Is it correct the I can no longer be on the loan at all making it impossible for my mother to co-sign?
Welcome Guest,
If your mother has the required credit score and income, she can very well co-sign for your mortgage. You can speak to other lenders and check out if you can be on the mortgage docs.
If your mother has the required credit score and income, she can very well co-sign for your mortgage. You can speak to other lenders and check out if you can be on the mortgage docs.