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tnczeller · Joined: 21 Feb 2009 Posts: 3 3.30 Dollars($)

My husband is looking to buy a new home, hoping to use an FHA loan for first time buyers. My credit is not too good because of a divorce so I am not applying with him. He currently has a credit rating of 687 and we were thinking of having his parents co-sign... here is our question: can he still qualify for a first time buyer FHA even though his parents cosign and already have an FHA loan. Also, will this effect the new tax credit, meaning will he not receive it since they already own a home?

Niicss · Posted: Mon Feb 23, 2009 2:37 am Post subject:

As far as I know, if his parents are on the mortgage, then I don't think he will qualify as a first time home buyer. And as he already has a home, he will also not qualify for the tax credit.

msnover92571 · Posted: Mon Feb 23, 2009 8:33 am Post subject:

Yes what niicss seem to know about this very close to what ive heard in the past.

gmakerley · Posted: Mon Feb 23, 2009 8:47 am Post subject:

let me set the record straight. the tax credit should definitely be available...here is my reasoning.

you are asking parents to co-sign. i presume that means you are not asking them to be owners of this property. fha allows "non-occupant coborrowers" on their loans, so that's what you'd want to do. the owner of the home will be your husband, who will be a first-time home buyer. the parents will be guaranteeing the loan by signing the promissory note, but will have no ownership interest in the property. therefore, they cannot cause you to lose your tax credit availability.

tnczeller, if i am incorrect in my assumption about them being co-signers only, please let me know.

tnczeller · Joined: 21 Feb 2009 Posts: 3 3.30 Dollars($)

Thank you so much for your help. I looked all over the internet trying to find out this information and it seems that what you have said matches what I am finding. You are exactly right, they would be co-signers, not owners. From what I am finding out, he will qualify for an FHA on his own as he has a credit score of 690, 3 years at his current job and our housing allowance/income ratio at the amount we want to borrow is around 21%. We also have 3% down, like FHA requires. I have 2 more questions: if they co-sign with him able to qualify on his own, will this lower his interest rate? I have read that we can include the closing into the loan, is this true for the first time buyer FHA?

gmakerley · Posted: Mon Feb 23, 2009 12:17 pm Post subject:

i have a question or two, an answer or two and hope we can clear it all up shortly. first, the questions: what state are you located in? this will determine if you can get down payment/closing costs assistance.
and then...is your calculation of 21% taking into account the real estate taxes, homeowner's insurance, mortgage insurance, etc?
okay...answers: first, fha requires 3.5% down payment, effective the 1/1/09; as for the rate, his debt ratios won't have any impact on the interest rate, nor will credit score.
if you are thinking of a loan program that is state-run in your state, then the interest rate is likely already cemented and not subject to change, unless market forces call for a change.
i think you're in good shape for this purchase, but let's see what your state can do for you, if anything...state-sponsored programs are always a top-notch product for first time home buyers.

Guest

I am a co-borrower and has my name on the title of a house with my parents. Now I am looking to buy a house, and Wells Fargo said they will approve me for an FHA loan. Actually the consultant said that I am already pre-approved for a certian amount...can they go back on that and not give me a loan later? Also, my question is similar to the original thread, will I qualify for the $8000 tax credit? I live in Iowa.

jenkin7 · Posted: Thu May 21, 2009 1:02 am Post subject:

Hi Guest,

A pre-approval does not guarantee that you will get the loan. A lender reserves the right to deny the loan till the date you close on it. But they do not do that unless your financial situation changes drastically.

As you are on the title to the property, you co-own it with your parents. You will not be able to qualify as a first time home buyer. In order to qualify, you must not have owned a principal residence within the last 3 years.

Posted: Thu May 21, 2009 7:32 am Post subject: Quit-Claim?

So my next question is, can I quit-claim my parent's house to take my name off the title? Then will I qualify? And how long does the quit-claim process take? I am looking for houses now, and hopefully will close on one withing 2 months.

savior70 · Posted: Sat May 23, 2009 5:40 am Post subject:

Hi

The quitclaim process doesn't take too much time. But the problem is even if you quitclaim now, it'll not qualify you for the first time home buyer. The first time buyer is defined as someone who has not owned a a primary house in the past three years. If you quitclaim now, you'll have to wait for the next 3 years before you can qualify for $8k tax credit.

Guest

my husband owns a property and he is the only one on the mortgage loan. I am not on the loan but I am on the title. Will I still qualify for a FHA loan? I am looking to purchase a home on my own without my husband.

litisham · Joined: 23 Jun 2009 Posts: 116 -0.62 Dollars($)

what is your credit score Lisa.turtle?

gmakerley · Posted: Mon Aug 17, 2009 8:10 am Post subject:

lisa, you are a homeowner and unless you can make a very strong case for it, you won't be able to get a new fha loan for a new property.

Guest

I am married but my wife is not on the loan or the title. We want to purchase a new home to live in as our primary residence. I will be selling my current home but do not want to wait for it to sell before purchasing the new one. Can I still be a co-borrower on my wifes loan to help our purchasing power? I know it won't be as much as if I have already sold my home but every little bit helps. And will she/we be able to claim it as our primary residence?

gmakerley · Posted: Sun Nov 29, 2009 8:24 pm Post subject:

is your existing home mortgaged with an fha mortgage? if so, you will be out of luck, i'm afraid. if it isn't, then you stand a chance. however, you need to be able to convince an underwriter of your plans, and that's not exactly a piece of cake. color me skeptical.

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