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
Looks like that George
thank you so much sonny
My husband and I are thinking of buying a home within the next year or so. He's been at his most recent job for less than a year, his transunion score is 627 and he makes about 25,000 a year. I'm currently unemployed with a transunion score of 617. We've paid off all our credit cards and have just a $350 car note. My mother has a fico of 681, makes about 35k a year and was recently approved for a 90,000 mortgage on her own. She decided that she'd rather help us buy a home. With these numbers do you think its possible to qualify for a FHA loan of 130-150k with her as a co-signer?
To Joanna,
Both you and your husband have credit scores, which are enough to help you qualify for an FHA loan. But his income is not too much to help him get a loan of a large amount. The fact that you do not have a job does not help him either. In a situation like this, it is worth your while to look for a co-singer, who will help you with his/her income. Your mother has good income and that can really help you and your husband in qualifying for a loan. However, if she has too much of debts, it can increase you and your husbands debt to income ratios and can prevent you from qualifying. If she does co-sign on the loan, what will be the combined debt to income ratio?
Both you and your husband have credit scores, which are enough to help you qualify for an FHA loan. But his income is not too much to help him get a loan of a large amount. The fact that you do not have a job does not help him either. In a situation like this, it is worth your while to look for a co-singer, who will help you with his/her income. Your mother has good income and that can really help you and your husband in qualifying for a loan. However, if she has too much of debts, it can increase you and your husbands debt to income ratios and can prevent you from qualifying. If she does co-sign on the loan, what will be the combined debt to income ratio?
The idea behind a co-borrower is to make the loan stronger. You want the co-borrower to have as little debt as possible and enough income to help meet the requirement for the loan size. Credit score requirements differ from lender to lender. The standard is 620 but, I know of several lenders that finance loans down to a 550 credit score including my company. LAJ, depending on what's on your husband's credit; he still might be eligible.
with fha loans, at least in our area, we find that people are using cosigners purely for debt-ratio qualifying, not necessarily to make the loan stronger, as you suggested, theo. does it strengthen a little? yes, but not because the cosigner has any notion of making payments or contributing to the monthly tab. in this case, i think the mom as cosigner will do precisely what you are looking to do, joanna, and that's to enable you to buy a home for which you'd otherwise not qualify.
Hello, I am looking to purchase a home using FHA ASAP.
My husband has 2 vehicle repossions on his credit (from his ex-girlfriend) so his credit is a 593 (income is 35k) and after speaking to some lenders they told me he would NOT qualify for FHA because of the large collections on his credit report.
I have a middle score of 654, however my income is only 16k per year (I'm going to school parttime) so I was considering having my father as a co-signer, his credit is a 735, income is 45k....But here's where Im confused...
He already owns a home using FHA, he owes about 26k. Can he still co-sign for me?
Or could I used my husbands income without having him on the loan? Maybe I could have him write a letter stating he pays me 500 per month?
Thanks for any replies!
My husband has 2 vehicle repossions on his credit (from his ex-girlfriend) so his credit is a 593 (income is 35k) and after speaking to some lenders they told me he would NOT qualify for FHA because of the large collections on his credit report.
I have a middle score of 654, however my income is only 16k per year (I'm going to school parttime) so I was considering having my father as a co-signer, his credit is a 735, income is 45k....But here's where Im confused...
He already owns a home using FHA, he owes about 26k. Can he still co-sign for me?
Or could I used my husbands income without having him on the loan? Maybe I could have him write a letter stating he pays me 500 per month?
Thanks for any replies!
If your fahther already has FHA lona in his nmae, he may not be able to help you by co0signing the loan
He may not qualify
He may not qualify
Thanks, do you know If I could count anything my husband gives on a regular basis me as income? We have a child and are married.
Opps that should say..
Thanks, do you know If I could count anything my husband gives me on a regular basis as income? We have a child and are married.
Thanks, do you know If I could count anything my husband gives me on a regular basis as income? We have a child and are married.
Nope
Your husband needs to co-sign for that be accounted for?
Your husband needs to co-sign for that be accounted for?
Are you serious? So how do mothers getting child support report that income when getting a home?
Are you serious? So how do mothers getting child support report that income when getting a home?
Are you serious? So how do mothers getting child support report that income when getting a home?
May be I understood wrongly
You are saying you get child support from your ex, then it will be counted towards your income
You are saying you get child support from your ex, then it will be counted towards your income