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Can you use a cosigner to qualify for an FHA loan?

Author: Jessica Bennet
Community Mentor
Ask Jessica
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.
Posted on: 28th Aug, 2008 10:58 am
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
Yes you can use a non occupant co borrower.
You can get a free quote by filling out some contact info at the top of the page.

Good Luck
Brian
Posted on: 28th Aug, 2008 06:32 pm
The previous poster is correct. He won't have a problem as a non occupant co borrower.
Posted on: 04th Sep, 2008 04:38 pm
i agree with both chris and brian. assuming your dad is adequately qualified you'll likely have no difficulty in obtaining a mortgage with him as co-signer.
Posted on: 05th Sep, 2008 10:00 am
I make about 100K a year but have a real estate investing bankruptcy on my credit. We are planning to take a loan out in my wifes name but she only makes enough to get approved for 150K loan. The loan we want is 200K. If we got a co signer, (father with excellent credit) would it be possible to get the loan for 200K? Thanks
Posted on: 12th Jan, 2009 08:36 am
visitor, just as the original poster ought to be able to use a non-occupying coborrower, so should you.
Posted on: 12th Jan, 2009 08:45 am
Comments above are correct. The commenters used different terms and accurately stated they should be OK. The non-occupant co-borrower is a relative on the mortgage and on title. A non-occupant co-signer is not on title and not on the mortgage, this being a relative who agrees to pay if you do not but has no ownership to the property.
Posted on: 13th Jan, 2009 11:52 am
My husband and I both have a credit score of just under 600 which is keeping us from qualifying for a loan. The broker is telling us that w can not use a co signer or co buyer with much better credit yet he is not explaining why. Is it ture that we can not use a co signer?? If so why?? Thanks!!
Posted on: 15th Jan, 2009 12:47 pm
Hi Shelley,

In my opinion, you should be able to use a co-signer or a co-buyer to get the loan. It is quite surprising as to why the lender is not agreeing to it. It will be better if you can contact with other lenders and check if they can give you a loan. You can speak to the lenders of this community and seek a no obligation free mortgage consultation from them. Let's hope they will be able to help you.

Thanks.
Posted on: 16th Jan, 2009 01:12 am
i work and make enough money to get a loan but my credit score is low.my wifes is better hers is 593 but she doesnt work but 1 day a week so she dont have enough money to account for.we have a co signer her granmother who has perfect credit.i thought we would b able to get a loan but we are getting the run around and everything?can anyone help us thanks
Posted on: 02nd Apr, 2009 04:58 pm
Hi

Actually due to the current volatile nature of the market, the lenders now are offering loans to those who qualify the stringent credit requirements. Thus, a 600+ credit has now become a necessity for you to qualify for loan. I'd suggest you to wait for some time before you apply for a loan and work on improving your credit during this time so you qualify for a loan at affordable rates annd terms.
Posted on: 03rd Apr, 2009 05:33 am
i qualify for only 50000 ona aloan my fiance only has a credit score of 577 can he qualify to be on the loan with me for fha
Posted on: 09th Apr, 2009 09:16 pm
HI jan, I do think that both the main borrower and co borrower must meet the min score of 620 to be put on the loan.
Posted on: 09th Apr, 2009 10:38 pm
that is correct, gary. all borrowers must meet the minimum 620 threshold.
Posted on: 10th Apr, 2009 10:52 am
I am self employed and have a credit score of 756. The lender says I don't make enough income & I require a co-signer. What are the requirements for a non-occupant co-signer? Does the lender require a certain income, credit score, etc?
Posted on: 29th Apr, 2009 12:03 pm
where are you located, cece? stated income loans exist in some locales; maybe you're in one of them.

for non-occupant coborrowers, the same minimum credit score of 620 applies. income would have to be sufficient so that debt ratios are still in order, but there's no specific number there.
Posted on: 29th Apr, 2009 12:13 pm
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