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
Credit score requirements differ from lender to lender. Example: I can lend down to 550 on FHA loans (10/2/2009). If you co-borrower makes the loan stronger through income or some other compensating factor and his credit is above the 550 mark, it might help.
FHA on 550 score
that looks impossible
As the guidelnes requires that the borrower need atleast 620 credit score
that looks impossible
As the guidelnes requires that the borrower need atleast 620 credit score
it has to be approved by fha. i do not think they will provide guarantee for a mortgage below credit score of 620
It is impossible beloe 620 in this market
WOW
I know George you are suprprised
Some times we need keep repeating to be heard or some one else will be misguided
Some times we need keep repeating to be heard or some one else will be misguided
if there's a lender out there who can offer loans and actually get them approved at scores as low as 550, that eliminates the conjecture about 620 being the minimum. yes, 620 is a "guideline," but it is a specific lender's guideline and perhaps even most lenders. however, if fha will continue to insure loans that have lower scores - again, down to 550 - then the applicable score for people is actually 550, as long as they're doing business with those specific lenders who have that guideline.
A non-occupant co-borrower is on the mortgage and on title.
A non-occupant co-signer is not on title and not on the mortgage.
Is it possible to support a borrower through my own credit without being on the mortgage but having a name on the title (as a security for myself)?
A non-occupant co-signer is not on title and not on the mortgage.
Is it possible to support a borrower through my own credit without being on the mortgage but having a name on the title (as a security for myself)?
if you cosign then you are "on" the mortgage. the mortgage is the debt. if you are on title as well as on the underlying debt, that makes you an owner. most people needing cosigners are not looking for another owner. if you are not secure in your cosigning, guess what! don't do it!
if i sign to be a non occupying co signor or borrower for my son in a different state, for a 1 family home on fha would the home i own be compromised at all if the mortgage payments were not met?
it is possible, yes; but it's a long-term solution. clearly, long before your own home would be at jeopardy, you'd have had ample opportunity to resolve the other situation.
lissette
Yes it is possible. If the payment is not done on the house you co-sing as agreed there is a good possibility that the lender can come after your assests after a court judegement
But also rememebr it is nto only your assets but your credit historywill also have a big impact
Yes it is possible. If the payment is not done on the house you co-sing as agreed there is a good possibility that the lender can come after your assests after a court judegement
But also rememebr it is nto only your assets but your credit historywill also have a big impact
ithink you need to talk with other lender, fha min requirement 620 credit score and your credit scores up to that you are easily take fha loan because your credit score is fair.
regards
regards
Kash your answer does nto make sense for this topic
and that is so unusual