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
I'm trying to get an FHA loan for 50k my credit score is around a 605, with a collection showing up that I just recently paid off. I was told by a bank that my income to debt ratio was too high to obtain the loan on my own. My dad has offered to co sign with me and I was just wondering if there was an income limit on how much he could make that wouldn't disqualify me from the FHA loan? Also was wondering how to calculate the income to debt ratio and where exa ctly it's supposed to be at. Thanks
Hi Jessa,
I haven't heard of any income limit in case of a FHA loan. However, it will be a better option if you could contact your lender and check out if there is any such limit. You can use the given calculator in order to find out your debt to income ratio: "http://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx".
I haven't heard of any income limit in case of a FHA loan. However, it will be a better option if you could contact your lender and check out if there is any such limit. You can use the given calculator in order to find out your debt to income ratio: "http://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx".
is a cosigner on a mortgage entitled to ownership of the property
Hi Lisa,
Unless the co-signer's name is mentioned on the property deed, he/she won't be able to claim ownership of the property. However, in most cases, the lender insists that the co-signer should be added to the property deed.
Thanks
Unless the co-signer's name is mentioned on the property deed, he/she won't be able to claim ownership of the property. However, in most cases, the lender insists that the co-signer should be added to the property deed.
Thanks
Okay, I have been dealing with a short sale through boa for the last 6 months. I had a job for 3 and a half years and while waiting for a signed contract my employer closed the doors. Found a job immediately after and while waiting even more that employer closed doors as well. Luckily I was working two jobs but my second is only 25 hrs a week compared at both pulling 55+. If my parents cosign will this help me qualify?note that I only am working 25 hrs a week with only a month employment. With a credit score of 700.
Hi erik,
If your parents have a good credit score and income and meet all the other required criteria, then they can co-sign for the loan.
Thanks,
Jerry
If your parents have a good credit score and income and meet all the other required criteria, then they can co-sign for the loan.
Thanks,
Jerry
Hi There.
About 4 years ago i helped my mother with her home loan, i co-signed for her and now i am looking into purchasing a home for myself and fiance. I am worried that because i co-signed that i wont be considered a first time buyer and i will have to have a higher down payment for the loan. how can i figure this out? if i am not a first time buyer how much is normally required down 20%?
thanks in advance.
About 4 years ago i helped my mother with her home loan, i co-signed for her and now i am looking into purchasing a home for myself and fiance. I am worried that because i co-signed that i wont be considered a first time buyer and i will have to have a higher down payment for the loan. how can i figure this out? if i am not a first time buyer how much is normally required down 20%?
thanks in advance.
Hi Cindy!
Welcome to forums!
If you have co-signed for the loan and if your name is mentioned on the property deed as one of the owners, you won't be considered as a first time home buyer. In case of conventional loans, you will require a down payment of 20%.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you have co-signed for the loan and if your name is mentioned on the property deed as one of the owners, you won't be considered as a first time home buyer. In case of conventional loans, you will require a down payment of 20%.
Feel free to ask if you've further queries.
Sussane
I am 80 and am buying house in retirement community. Have very good credit and $225,000 in cash in bank but some bad investments so my income is only $3500 month. Have excellent credit and $500,000 in investments that is not liquid. My mortgage will be $130,000. Can I qualify for a FHA loan or will I need a co-signer.
Hi peppie,
If you have the required credit score and a stable job, you will be able to qualify for a FHA loan easily. However, you should check out that you don't have any charge offs mentioned in your credit report. If there is any such charge off mentioned in your credit report, you may have to pay it off.
Thanks
If you have the required credit score and a stable job, you will be able to qualify for a FHA loan easily. However, you should check out that you don't have any charge offs mentioned in your credit report. If there is any such charge off mentioned in your credit report, you may have to pay it off.
Thanks
My husband and I have have a credit score of 574 and 583, my question is can my mother with A 1 credit co-sign a mortgage loan for us. Thanks wondering.
Hi Guest!
Welcome to forums!
Your mother can co-sign for your loan if she has good credit. When you apply for a loan, you should let the lender know that your mother will be co-signing for you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your mother can co-sign for your loan if she has good credit. When you apply for a loan, you should let the lender know that your mother will be co-signing for you.
Feel free to ask if you've further queries.
Sussane
i spoke with a mortgage broker about a small mortgage. he said that they look at 3 scores. The high, mid, and low score. He said for a mortgage they use the mid score. My scores were 645, 600, and 576. He said I have the income and the credit is improving, but I couldnt get qualified anywhere. Do you think this is true?
as i have a house property in the name of my father who is at the age of 65 years, now i wanted to renew my house for which i wanted to take a loan of rs. 10 lakhs from the bank, but bank says that the loan is not sanctioned in the name of my father due to his age factor. and also it is not given in my own name as the house is on the name of my father. but I wanted to take a loan of rs 10 lakhs in my own mane to get benefits of income tax under the act onrenewal of the house property thanks hemma