Posted on: 22nd Nov, 2009 08:42 pm
I am inquiring about information on a co-signer for an fha loan-our mortage lender said the co-signer needs a minimum of 600 for their credit score. My question is do they need a current job to co-sign as my brother-in-law is willing however was recently laid off?
Hi Kerri,
A co-signer does not necessarily have to have a job in order to be on the loan. As long as he has a good credit, he can co-sign on the loan. However, if the primary borrower defaults on the loan, the lender will come after the co-signer.
A co-signer does not necessarily have to have a job in order to be on the loan. As long as he has a good credit, he can co-sign on the loan. However, if the primary borrower defaults on the loan, the lender will come after the co-signer.
Yaa, If he has good credit score then employment status doesn't matters.
A cosigner does not need to have employment.
Just take in consideration though, a lender will examine the cosigners debts as well. So on top of yours, they will be looking at his monthly obligations. If this exceeds the amount the lender feels is reasonable (typically 45% of total income) your loan may not get approved.
there is always the chance though and it doesn't hurt to try.
Just take in consideration though, a lender will examine the cosigners debts as well. So on top of yours, they will be looking at his monthly obligations. If this exceeds the amount the lender feels is reasonable (typically 45% of total income) your loan may not get approved.
there is always the chance though and it doesn't hurt to try.
the main thing is good credit score if he ha good credit score than no problem
The lender will use the lowest of the two credit scores (yours and the co-signer) so I do not see how a co-signer can help you if the issue is your credit score. Now, if that person is going to be the ONLY person on the mortgage...then that is a different story.
Kerri, what is the reason for the cosigner?
Normally, a cosigner is needed for their income as the borrower may not have enough income to qualify on their own. The relative is not employed and has no income to contribute to the transaction.
Perhaps the relative is contributing money towards the purchase and wants to be on title and maybe on the mortgage as a coborrower to secure an interest in what he is contributing to?
Whatever, reason, he can be a cosigner but not for the purpose of contributing any income to the transaction to qualify
Normally, a cosigner is needed for their income as the borrower may not have enough income to qualify on their own. The relative is not employed and has no income to contribute to the transaction.
Perhaps the relative is contributing money towards the purchase and wants to be on title and maybe on the mortgage as a coborrower to secure an interest in what he is contributing to?
Whatever, reason, he can be a cosigner but not for the purpose of contributing any income to the transaction to qualify
jobs is not matter if your brother have good credit score because they require good credit score that is exepted for fha loan ..
and contrary to most of the posts up here, i am in agreement with john. the usual usage of a co-signer on an fha loan is for the purpose of adding income to the mix. if that's not the case here, that's fine, but keep in mind, as he noted, that any debts your cosigner may have will be considered in the qualifying.
