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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
hello, my wife and i are state workers with a 1.5 year old chapter 7 bankruptcy. we have a home we would like to purchase but they stated even though we have a 725 credit score we cannot be approved for any existing programs until our two year anniversary date of the bk of august. do you know if we have a co-signer with the bk if they will allow us an fha loan? we have no bills and make a little over 100k between us and looking at a 250k home. thank you!
Posted on: 02nd Jan, 2010 09:02 am
unless and until i hear that a co-signer has been allowed by a lender to assist a borrower in your shoes, i'm going to continue to say that the two year rule is solid, and co-signers would make no difference there.
Posted on: 02nd Jan, 2010 05:11 pm
I am trying to get a loan in just my name. I am not on the loan that my husband has now for our house. We need a bigger house for our family, so I am trying to get it in just my name. Right now I am a stay at home mom with the two youngest kids. Will I have a hard time getting any kind of loan if I use my husbands income as a guarenteer of income to pay the mortgage? My in-laws have said they would help out and co-sign if needed since my credit isn't so good.

Thank you for your input and time.
S.
Posted on: 07th Jan, 2010 07:28 pm
Hi Guest!

Welcome to forums!

As you do not have any income, you won't get pre-approved for a loan. You've also mentioned that your credit is not good. Your husband and your in-laws can take a mortgage in their name. However, as your husband already has a mortgage in his name, I don't think he'll qualify for the loan.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Jan, 2010 09:32 pm
guest, not only will you not be pre-approved, but you will not be post-approved for the loan you desire either, because you lack income. you cannot claim your husband's income as a guarantee for the purpose of borrowing.

it's a remote possibility that with your in-laws as cosigners, you might find a lender who'd consider granting a loan, but your credit, you said, is not good. "not good" can mean a lot of things, but if it's really bad, that's enough to disqualify you as well.

it's time to rethink the plan, i believe.
Posted on: 08th Jan, 2010 08:05 am
my credit is score is 603 and i make a about 36000 a year my wife is in college and will graduate soon. my dad has no debt and great credit and makes about 70000 ayear if he co signs .what are my chances of a 100k loan
Posted on: 15th Jan, 2010 08:55 pm
bill, dollar-wise it seems like you're in good shape. however, your assets and your credit will be ruler, here.
Posted on: 17th Jan, 2010 08:37 pm
with a co-signer for a mortgage will I be able to claim the interest on my taxes as the occupant and purchaser
Posted on: 20th Jan, 2010 04:24 pm
Hi craig,

If your name is on the mortgage docs, then you would be able to claim deductions on your taxes for paying the mortgage interest.
Posted on: 20th Jan, 2010 10:49 pm
I have a credit score better than 750 with enough income to purchase the home that I want. My wife just filed for personal bankrupcy and I was not part of it. Can I apply alone and get approved for a mortgage loan.
Posted on: 22nd Jan, 2010 10:07 am
you can certainly apply, ben; but telling you whether or not you'll obtain a loan is impossible for anyone here to say without knowing a great deal more information. by all means, though, you should investigate with your lender.
Posted on: 22nd Jan, 2010 04:23 pm
i have a 526 credit score and my husband has a 518 so if we got a cosigner with very good credit, would we be able to get the loan?
Posted on: 25th Jan, 2010 04:35 pm
i have a 526 credit score and my husband has a 518 so if we got a cosigner with very good credit, would we be able to get the loan?
Posted on: 25th Jan, 2010 04:35 pm
with new fha guidelines in place, and with lenders being called on the carpet by fha for way too many losses, and with other lenders having scaled way, way back on their benevolence concerning credit scores, your cosigner could have an 850 score and you wouldn't get that loan. that's just my opinion, but it's based on the new reality in the marketplace and not some pie in the sky idea of the best interest rates going to the worst credit scores.

you can try but don't get your hopes up. better yet, work on improving those scores to something resembling decent, and you'll have a better chance later on.
Posted on: 25th Jan, 2010 06:47 pm
if i an trying to refinance into an fha loan can i have a non occupant cosigner and get cash out? i have been told so many different things.
Posted on: 25th Jan, 2010 09:40 pm
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