Posted on: 25th Jul, 2010 10:26 am
My husband and I have excellent credit and income and are trying to help my sister and brother in-law, who live in CA, purchase a home with us as the non-occupying co-borrower. However, when we spoke with a mortgage lender, we were informed that we could not take out an FHA loan of this type because we do not live in the same state as my sister and her husband (we live in IA). I have never heard of this requirement and everything I have researched on the subject states that we only have to be a permanent resident of the US. I would like to find out if this out-of-state restriction is true before we go to another lender to have them run our credit and qualify us. If anyone can help me answer this I would greatly appreciate it!
Michelle
Michelle
Just bumping this up...hoping someone can answer.
Hi Bellejth,
As far as I know, a person can qualify for a FHA loan taking the help of a non-occupying co-borrower. I would suggest you to contact other lenders and apply for a loan. You can even speak to the lenders who participate in the forum discussions and seek a no obligation free mortgage quote. This will help you know what type of rates and terms you may receive when you apply for a mortgage.
As far as I know, a person can qualify for a FHA loan taking the help of a non-occupying co-borrower. I would suggest you to contact other lenders and apply for a loan. You can even speak to the lenders who participate in the forum discussions and seek a no obligation free mortgage quote. This will help you know what type of rates and terms you may receive when you apply for a mortgage.