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.
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
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
I am told I have 700+ credit, but a credit thin file. I have a credit card as my only credit account, and live with my parents. I have a cell phone and car insurance as my only other sources of monthly payments. Can my dad co-sign? I am taking it for granted that he would have credit and he does own his own home and has an auto loan and some credit card debt. My lender suggested I rent for a year, but I found a home close to my brother's and I want it now!
Hello
We are looking to put in an offer at the end of March. My husband and I have a excellent credit, retirement and vehicle assets and can put 20% down. Since he has student loan debt (even though will be deferred) and I will have to relocate my job ( cannot use my income) we cannot do a conventional loan I believe. He will be beginning his doctor residency in July. He will get a contract that will state how much his income will be. Will FHA loan qualify us with his income and use his contract? Also his mom could co-sign with us. She owns a couple rental properties, has her own home and has net worth over $600K. Would we still qualify for the first time home buyers tax credit if she was our co-signer? Last question I have is with 20% down do we avoid paying MIP (monthly fee .5%) and PMI (upfront 1.5%) or are we still stuck paying a monthly fee due to it being an FHA loan? Any advice would be greatly appreciated.
We are looking to put in an offer at the end of March. My husband and I have a excellent credit, retirement and vehicle assets and can put 20% down. Since he has student loan debt (even though will be deferred) and I will have to relocate my job ( cannot use my income) we cannot do a conventional loan I believe. He will be beginning his doctor residency in July. He will get a contract that will state how much his income will be. Will FHA loan qualify us with his income and use his contract? Also his mom could co-sign with us. She owns a couple rental properties, has her own home and has net worth over $600K. Would we still qualify for the first time home buyers tax credit if she was our co-signer? Last question I have is with 20% down do we avoid paying MIP (monthly fee .5%) and PMI (upfront 1.5%) or are we still stuck paying a monthly fee due to it being an FHA loan? Any advice would be greatly appreciated.
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about35987.html#154656
Take a look at it and I hope it would help you.
http://www.mortgagefit.com/predeal/about35987.html#154656
Take a look at it and I hope it would help you.
i already cosigned for a loan for an FHA loan for my daughter can i co sign for an FHA loan for my son as well my credit is very good and my income is sufficient??
Are birth certificates needed to show blood line as a relative in order to qualify as a cosigner?
i would find it unusual for someone to request your birth certificate to prove a bloodline, but lenders have changed all the rules in the last few years - why not create another barrier to sensibility.
Are rates on a 30 year Fixed FHA loan different than a 30 year fixed conventional loan? If so how much different?
The rates may vary to some extent. This depends upon various other factors associated with the market. You can speak to a lender and he would help you with the present FHA and conventional loan interest rate for a 30 year fixed.
So, on your above post about "Can a cosigner help you qualify even if you have bad credit?" you cannot qualify if you have bad credit and your cosigner has good credit?
Hi Stacey!
Welcome to forums!
If the co-signer has a good credit, then you would be able to qualify for a loan. The cosigner, like you, would be equally responsible for the loan. If you default on your mortgage payments, the lender will sue the cosigner for the payments.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the co-signer has a good credit, then you would be able to qualify for a loan. The cosigner, like you, would be equally responsible for the loan. If you default on your mortgage payments, the lender will sue the cosigner for the payments.
Feel free to ask if you've further queries.
Sussane
stacey, it matters much just how "bad" "bad" is. if your scores are so low you can't get under them, then a cosigner isn't going to accomplish much. the best bet is to discuss this with a lender to see where you stand right now.
My husband and i are tryingto buy our first home, neither of us have a 620 credit score due to issues in the past, His is better at 588, and His parents are willing to co-sig but the leder says we can't get a loan with or without a co-signer. But will not explain why. is there a reason that he will not even try. Isn't he obligated through the FHA to atleast try?
Will FHA allow an occupant co-borrower with no income/employment, if there is a non-occupant co-borrower with income / employment?
Thanks!
Thanks!
To New home buyer,
I would suggest you to have a word with the other lenders of your area and check out what they have to say in this regard. You may even seek a no obligation free mortgage consultation from the lenders of this community. This will help you know whether or not you would get a loan.
To Visitor J,
As far as I know, FHA will not allow an occupant co-borrower with no income to cosign for a loan.
I would suggest you to have a word with the other lenders of your area and check out what they have to say in this regard. You may even seek a no obligation free mortgage consultation from the lenders of this community. This will help you know whether or not you would get a loan.
To Visitor J,
As far as I know, FHA will not allow an occupant co-borrower with no income to cosign for a loan.
Me and My Fiance are trying to get approved for a house and have talked to two different Loan Officers, His credit is in the 590 area and mine is in the 540 area. The two men he has talked to both told him that he cannot have a co-signer because his Credit Score has to be a 620 also, is that true? And besides getting his credit score up; which will take time, what else can we do to get approved for a loan to by a house and even use a co-signer (his father who has Excellent credit)?/
Thanks, Brittany
Thanks, Brittany