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
Thanks Sussane!! Do you also happen to know if this same property would end up being in probate as a part of the estate? The mortgage broker is of the opinion that a cosigner can just be on the loan and not listed on the deed, that doesn't seem right to me. Do you know any different?
Welcome kathleen,
In order to cosign for the loan, the person's name should be mentioned on the porperty deed. If the eldely person becomes the owner of the property, then this will be included in his/her estate.
In order to cosign for the loan, the person's name should be mentioned on the porperty deed. If the eldely person becomes the owner of the property, then this will be included in his/her estate.
Can someone give me some help as to what I can do to qualify for a FHA mortgage?
My mid score is 641. Gross income is 4300/month (includes 2 years of documented income). My car and my partner's car is financed in my name totalling 750/month. Student loans in deferment for another 2 years at least; they will total about 1300 month. Secured loan of 125/month and three CC/charge accounts that are paid off at the end of each month. Most recent late payment is 11/11; no unpaid collections.
My partner's mid score is between 550(ish) and 630(ish). Gross income 3700/month. Car payment 325/month. Student loans in deferment for at least 2 years, (250/month @ 30 years).One CC/charge account 25/month. Has collections accounts open and unpaid.
From what I have been told my student loans will not be included in debt to income because they are in deferment for at least 12 months, is this true? Also is there any way I can have his car payment, $500, taken off my debt to income ratio because he pays its every month?
We would both live in the house and will have enough to pay the mortgage and other bills just seem to be having a problem with getting approved b/c of my debt to income ratio.
Thanks!!
My mid score is 641. Gross income is 4300/month (includes 2 years of documented income). My car and my partner's car is financed in my name totalling 750/month. Student loans in deferment for another 2 years at least; they will total about 1300 month. Secured loan of 125/month and three CC/charge accounts that are paid off at the end of each month. Most recent late payment is 11/11; no unpaid collections.
My partner's mid score is between 550(ish) and 630(ish). Gross income 3700/month. Car payment 325/month. Student loans in deferment for at least 2 years, (250/month @ 30 years).One CC/charge account 25/month. Has collections accounts open and unpaid.
From what I have been told my student loans will not be included in debt to income because they are in deferment for at least 12 months, is this true? Also is there any way I can have his car payment, $500, taken off my debt to income ratio because he pays its every month?
We would both live in the house and will have enough to pay the mortgage and other bills just seem to be having a problem with getting approved b/c of my debt to income ratio.
Thanks!!
Well, if an account is in deferment for the next 12 months, then it may not be included in your debt to income ratio. Though the partner pays off the car payment on time, it will be included in the debt to income ratio as it is a kind of debt.
My grand-daughter,25 will co-borrow for me, and I am having collections paid.. I had identity thrift, and was very terrible. I am disabled and need this house to move around in my wheelchair. Is there a program that can help me?I can pay this off later this year, if needed. Is there any help with this? Thank you in advance...Pamela...
Here's my scenario. I just purchased my home in June 2010. I recently got engaged and my fiancé and I are looking to purchase a home. He doesn't make enough for us to get a loan amount that we would like. I was told tthat I could not co borrow/co sign on his fha loan bc I currently have one. Is this true? I am planning on renting my home under Section 8. But how would I help if I have not rented the home yet? I'm not going to go through the rental process unless I know that I can co sign. How could that be considered in order to meet the requirements? Bc without the rental income, I dont think I'd meet the requirements...please help.
My fiancée and I want to buy the condo we are currently renting from a friend. He is from England and I cannot get financed due to a divorce. She said she would allow us to buy if we wanted to just pay her mortgage payments. How can we do this legally?
Hi Joyce,
As far as I can understand, she is speaking of owner financing. In this case, it is the owner who finances the property and you don't have to go to a mortgage lender for the loan. If the property is free and clear, then you can consider this option of financing.
As far as I can understand, she is speaking of owner financing. In this case, it is the owner who finances the property and you don't have to go to a mortgage lender for the loan. If the property is free and clear, then you can consider this option of financing.
How can you prove you have a long standing relationship with a cosigner ?
Hi kindaunique,
If someone from your family, friends or relatives consigns for you, then I don't think you will have to prove anything. Nevertheless, you can contact the lender and he may let you know what kind of proof they may require in this case.
Thanks
If someone from your family, friends or relatives consigns for you, then I don't think you will have to prove anything. Nevertheless, you can contact the lender and he may let you know what kind of proof they may require in this case.
Thanks
i was just told that the cosigners fico will not be considered. that the borrower with the lowest fico will decide the interest rate. is this true? and why?
Hi ibebabydoll,
As far as I know, the credit score of the co-signer is taken into consideration by the lender while giving the loan. That is one of the main reasons why people with bad credit take help of co-signers.
Thanks
As far as I know, the credit score of the co-signer is taken into consideration by the lender while giving the loan. That is one of the main reasons why people with bad credit take help of co-signers.
Thanks
I am trying to find out some information. My daughter and I are trying to buy a house using FHA...we were completely approved and everything and then the lender came back stating the underwriter said that FHA does not allow for parent child to purchase a house together and live together.
Can anyone please verify where I can see this is the statue or regulations for FHA. I have looked and looked and I find nothing about this situation. They refuse to allow us to do it together saying it is FHA regulations that we can not purchase and live in it together and using both our incomes.
Any and all help would be really appreciated.
Can anyone please verify where I can see this is the statue or regulations for FHA. I have looked and looked and I find nothing about this situation. They refuse to allow us to do it together saying it is FHA regulations that we can not purchase and live in it together and using both our incomes.
Any and all help would be really appreciated.
Hi vasjrs,
I haven't heard of any such rule. Rather I have heard the different. You can even check out this page: "http://www.fhanewsblog.com/2011/05/fha-loans-can-a-parent-and-child-apply-for-an-fha-mortgage-together/". Nevertheless, I will suggest you to speak to the other local FHA lenders and check out if they can help you in this regard.
Thanks
I haven't heard of any such rule. Rather I have heard the different. You can even check out this page: "http://www.fhanewsblog.com/2011/05/fha-loans-can-a-parent-and-child-apply-for-an-fha-mortgage-together/". Nevertheless, I will suggest you to speak to the other local FHA lenders and check out if they can help you in this regard.
Thanks