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
is what you claim your husband gives you child support? is it court-ordered? or is it that you simply want to call it child support so a lender would use it? based on your initial inquiry about using his income - "Maybe I could have him write a letter stating he pays me 500 per month? " it would appear the latter is the case. i'm afraid you simply won't qualify, unless you find one of those lenders who do the sub-600 credit score loans.
I have a fha loan for 180,000 and income of 145,000 per year and a credit score of 700 may I cosign fora fha loan for my son who has a score of 650 and income of 30,000 per year on a 120,000 Home
My dtr. and son in law have a credit score around 225, only debt is school debt, have a P&S on a house but have waited forever for the mortgage company (FHA loan). I think the mortgage company, not a bank "preapproved" the amount they could borrow, and they haven't gone over that amount. I thought "preapproval" meant a bank - Can anyone explain the mortgage co. process? The buyers don't have a big income, but the mortgage co. knew that, and they have an unblemished rent record, etc. How long can this take? Been almost two months.
my daughter is trying to get approved for a home loan of approximately $40k, her credit score is in the four hundreds and she brings home about $1000 per month, by credit isnt the greatest but I have good income, will I be able to co-sign for her a home mortgage.
Hi sallyjoe,
If your daughter has credit score of around 400 points, there is no way she can qualify for a loan in this market. You could have helped her as a co-signer to qualify for the loan, in case her income is not sufficient. But you cannot help her with the credit scores. She will have to work on her credit to get approved for a home loan and a score of around 600 is a minimum requirement these days.
Hi jeanni,
" My dtr. and son in law have a credit score around 225"
With a credit score of 225, it is impossible to get approved for a mortgage. They need to work on their credit in order to qualify for a home loan. Pre-approval does not mean the borrower will definitely get the loan. The pre-approval is not a guarantee for a mortgage. If your daughter and your son-in-law have gotten pre-approved, it means they are likely to be able to get a mortgage of a certain amount. But it cannot be said that they are completely assured of getting the loan.
If your daughter has credit score of around 400 points, there is no way she can qualify for a loan in this market. You could have helped her as a co-signer to qualify for the loan, in case her income is not sufficient. But you cannot help her with the credit scores. She will have to work on her credit to get approved for a home loan and a score of around 600 is a minimum requirement these days.
Hi jeanni,
" My dtr. and son in law have a credit score around 225"
With a credit score of 225, it is impossible to get approved for a mortgage. They need to work on their credit in order to qualify for a home loan. Pre-approval does not mean the borrower will definitely get the loan. The pre-approval is not a guarantee for a mortgage. If your daughter and your son-in-law have gotten pre-approved, it means they are likely to be able to get a mortgage of a certain amount. But it cannot be said that they are completely assured of getting the loan.
Hello, I am looking to buy a house. My credit is around 560-585. I still currently have a collection on my account. I make $58,500 a year. I have one vechile note $19,000 on my credit since nov 08 and I have never been late on a payment. My wife has a little lower score than I and she is currently drawing unemployment. She is also in school and will graduate in Aug. 2010. My mother and father are both willing to co-sign. I have no idea if they have ever had an FHA loan. They both have scores above 830 with great income. They have owned their house since 18 years or more. Will I be able to qualify for a $110,000 FHA loan?
well, mr pettigrew you certainly have enough income, it would appear, to qualify for such a loan. however, you'll have to find a lender willing to work with your credit score as it is. as for your wife, i'm not sure if she'd find her way onto a loan note or not. you didn't state her score except to say it is worse than yours.
as for our other poster who noted a credit score of 225, there is no such score. you'll find that the three repositories' lowest possible score is 300.
as for our other poster who noted a credit score of 225, there is no such score. you'll find that the three repositories' lowest possible score is 300.
I'm sorry. We were not planning on using my wife on the loan at all. Do you think that any lenders will work with me or am I just out of luck even though I have 2 co-signers with 830 plus credit? Would you suggest anybody who might work with me?
go back to the initial pages of this thread. i believe there's a lender on here who has indicated an ability to work with scores such as you have.
I am looking to get a loan for about 50K on a 4 unit building. I will be occupying one of the units and renting out three. My credit score is decent (660) but my income is low ($12000). If I get a co-signer do you think I will be able to qualify for the 50K.
Does the cosigner have to be a realive?
Does the cosigner have to live on the property?
Thanks
Does the cosigner have to be a realive?
Does the cosigner have to live on the property?
Thanks
Also I found this article: "Under the FHA rules, a parent can co-sign a loan for their child. The property is owned in the childname, not co-owned with the parent. FHA puts all of the income and debt into one calculation, so it is possible to have a child who does not earn any income purchase a property using FHA financing with a parent co-signer.
Does this apply to multi-unit buildings.
The discussion of multiple properties financed this way is addressed, the specific comments are:
Transactions in which parents help their children buy their first home are permitted as long as the non-occupant co-borrower is not developing a portfolio of rental amount of the financial contribution by the non-occupant co-borrower and the number of other properties similarly owned must be looked at closel
So, ife co-signing parent has a bunch of other properties, then we may be in trouble. If the kids involved are close to qualifying in their own, especially if they all live in different areas, then we should be ok. Obviously, if the kids all buy houses right next to each other, then ™re in serious trouble.
Does this apply to multi-unit buildings.
The discussion of multiple properties financed this way is addressed, the specific comments are:
Transactions in which parents help their children buy their first home are permitted as long as the non-occupant co-borrower is not developing a portfolio of rental amount of the financial contribution by the non-occupant co-borrower and the number of other properties similarly owned must be looked at closel
So, ife co-signing parent has a bunch of other properties, then we may be in trouble. If the kids involved are close to qualifying in their own, especially if they all live in different areas, then we should be ok. Obviously, if the kids all buy houses right next to each other, then ™re in serious trouble.
your $12K annual income will be increased by the rental income you'd be receiving from the other 3 units, cynthia. whether you'll qualify or not is going to be dependent on the rental income you'll receive, as well as income and debt of your co-signer. no, your co-signer need not live in the property.
FHA does not have a set minimum credit score. however, with a score of less than 620 you will have to explain the reason for the low score to the underwriter. even if you have a cosigner the loan is based on the lowest credit score. so using a cosigner with a higher credit score will not help.
Dec 15 2009 I was qualified for a new FHA loan, offer accepted on a home....now the lender is telling me that because I claimed on loss on a rental property in 2008 it is affecting my ability to get the loan (LTV)
until I fill my 2009 taxes and show a profit on break even on my rental property. They then tried to add my parents who will not reside in the property but are now telling me that the FHA guidelines just changed last month and now FHA does NOT allow non-occupant co-signers. Is this true as of today 15Dec09?
until I fill my 2009 taxes and show a profit on break even on my rental property. They then tried to add my parents who will not reside in the property but are now telling me that the FHA guidelines just changed last month and now FHA does NOT allow non-occupant co-signers. Is this true as of today 15Dec09?
i've been made aware of no such change in policy by fha at this stage. anyone else have any news about this supposed change?