Posted on: 30th Oct, 2008 01:39 pm
Hello,
My situation and question is this: my husband and I our in the process of trying to get approved for a fha loan, we wont qualify by ourselves because of my husbands debt to income ratio. We would need a co-signer. Would we be able to use my father in law, my husbands father as a co-signer not a co-borrower? He's more then willing to help us. He makes $80000 a year he owns 2 homes rents 1 out, owns 3 cars but we pay 1. he's worked as a truck driver for 10years. His fico score is roughly 780 or higher. Me and my husband alone make 25000 a year together.
THANKS,
LENA
My situation and question is this: my husband and I our in the process of trying to get approved for a fha loan, we wont qualify by ourselves because of my husbands debt to income ratio. We would need a co-signer. Would we be able to use my father in law, my husbands father as a co-signer not a co-borrower? He's more then willing to help us. He makes $80000 a year he owns 2 homes rents 1 out, owns 3 cars but we pay 1. he's worked as a truck driver for 10years. His fico score is roughly 780 or higher. Me and my husband alone make 25000 a year together.
THANKS,
LENA
Hi joelena!
Welcome to the forums!
Yes, you can definitely add your father in law as a co-signer for the loan. However, you will have to remember that if you and your husband are not able to pay the loan, then the lender will ask your father in law to pay off the loan for you.
You said that your husband's debt to income ratio is high and so he will not be able to get the loan. As far as I know, lenders offer loan to people with as high as 43% DTI. However, I think, the rate of interest will be higher in that case.
Feel free to ask if you have further queries.
Sussane.
Welcome to the forums!
Yes, you can definitely add your father in law as a co-signer for the loan. However, you will have to remember that if you and your husband are not able to pay the loan, then the lender will ask your father in law to pay off the loan for you.
You said that your husband's debt to income ratio is high and so he will not be able to get the loan. As far as I know, lenders offer loan to people with as high as 43% DTI. However, I think, the rate of interest will be higher in that case.
Feel free to ask if you have further queries.
Sussane.
Hi joelena!
Its good that your father is law is ready to become the co-signer. I think you should go for it. But Sussane is correct in saying that if you are unable to pay the mortgage dues, he will have to pay it for you.
Thanks.
Its good that your father is law is ready to become the co-signer. I think you should go for it. But Sussane is correct in saying that if you are unable to pay the mortgage dues, he will have to pay it for you.
Thanks.
lena, you'll find that adding your father-in-law as co-signer should be most helpful. simply make sure that the lender you're working with is in agreement - have your loan officer check with the underwriting staff to ensure that they'll look at things that way, also.
yes, indeed, co-signing means someone agrees to pay a debt.
yes, indeed, co-signing means someone agrees to pay a debt.
Something important you must know.
If your father-in-law will occupy this house then all of your incomes and debts would be combined when calculating debt ratio's.
You may also want to ask him if he currently has an FHA loan on any of the houses he owns. If he does they may not allow him to go on the loan.
If your father-in-law is a non-occupant co-borrower then most lenders still want you and your husband to debt ratio seperately from your father-in-law.
Undoubtably adding your father-in-law would improve your chances for being accepted for this loan. With him being a low risk it may warrant the FHA underwritting system to approve the loan even with your ratio's being outside of the traditional 31% Housing and 43% Total debt ratio guidelines.
If your father-in-law will occupy this house then all of your incomes and debts would be combined when calculating debt ratio's.
You may also want to ask him if he currently has an FHA loan on any of the houses he owns. If he does they may not allow him to go on the loan.
If your father-in-law is a non-occupant co-borrower then most lenders still want you and your husband to debt ratio seperately from your father-in-law.
Undoubtably adding your father-in-law would improve your chances for being accepted for this loan. With him being a low risk it may warrant the FHA underwritting system to approve the loan even with your ratio's being outside of the traditional 31% Housing and 43% Total debt ratio guidelines.
With a non-occupant coborrower/signor... (for fannie/freddie shops)
Fannie will only qualify with the occupant(s) income - if you need the income of the non-occupant co-borrower then you will need to try Freddie w/ the total non-occupant borrwers DTI not exceeding 43%.
I am not familiar with non-occupant rules with FHA/Ginniebut I don't think this situation would be allowed from previous experience however I could be wrong.
Fannie will only qualify with the occupant(s) income - if you need the income of the non-occupant co-borrower then you will need to try Freddie w/ the total non-occupant borrwers DTI not exceeding 43%.
I am not familiar with non-occupant rules with FHA/Ginniebut I don't think this situation would be allowed from previous experience however I could be wrong.