Posted on: 01st Jul, 2009 08:31 pm
I am purchasing a new home - have commission only income for the past 3 years but a large down payment for an LTV under 60%. (Loan amount around $90k) My parents are willing to co-sign for me. Is it possible to go conventional rather than FHA with a non-occupant co-borrower? I hate to pay MI with an LTV that low.
Hi suzannahsmoot,
You can definitely go for a conventional loan to purchase the house. You have a large amount of down payment which will work in your favor. Your parent can co-sign on the loan for you. They do not necessarily have to occupy the house to co-sign. They are merely trying to help in qualifying for the loan. It is not mandatory for them to live in the property. With the LTV as low as 60%, there is no need to purchase a mortgage insurance.
You can definitely go for a conventional loan to purchase the house. You have a large amount of down payment which will work in your favor. Your parent can co-sign on the loan for you. They do not necessarily have to occupy the house to co-sign. They are merely trying to help in qualifying for the loan. It is not mandatory for them to live in the property. With the LTV as low as 60%, there is no need to purchase a mortgage insurance.
can u use income from a non occupant coborrower to quaify for loan
Hi Guest,
As far as I know, you'll be able to use the income of the non occupant co-borrower to qualify for a conventional loan.
Take care.
As far as I know, you'll be able to use the income of the non occupant co-borrower to qualify for a conventional loan.
Take care.
If you're going conventional, it would have to be through a Freddie Mac loan as Fannie doesn't allow non occupying co-borrowers.
My daughter and son inlaw want to purchase a home that belongs to the son inlaw's mother. She is willing to sell at what her mortgage is to them. Son inlaw is self-employed and cannot qualify for a conventional loan. Can we parents co-sign for their loan and willing to gift them 20% of loan amount? They have been living in the house since last August and could prove that they are making the payments.
Lorrie, if they won't qualify for conventional financing, then it would seem they're likely to venture down the FHA road. Is that the plan? If so, you need not provide gift funds of 20 per cent...they'd need 3.5% down.
Cosigning is always a reasonable option if, for some reason, their income is insufficient to qualify for the loan. If you're speaking of cosigning for the purpose of bolstering credit, that's not something that would actually work. Their credit situation would need to stand on its own.
Cosigning is always a reasonable option if, for some reason, their income is insufficient to qualify for the loan. If you're speaking of cosigning for the purpose of bolstering credit, that's not something that would actually work. Their credit situation would need to stand on its own.
