Posted on: 22nd Apr, 2009 10:25 am
Hello Super Friends,
I have a question to ask in regards to being an FHA co-signer:
Me and my fiancee would like to finance a home. With her being the primary account holder because she will be a first time buyer; however her income is low, and I would like to be a co-signer because it takes our income to about 140K instead of just 60K with her alone. However, I have a foreclosure with a beacon score of 680, and the only negatives I have on my credit report are the foreclosure, and the 2nd loan mortgage is being reported as a charge off. The foreclosure is 3 years old as well as the charge off. I have been in contact with Countrywide, and they will not setup any form of a payment arrangement nor will they take a payment for the bad debt (this is what I have been told after talking to a dozen folks); so I am under the impression it has to remain on my credit.
Is it possible that I can be a co-signer on an FHA loan, with this charge off? My logic tells me it will need to be paid off but I wanted to get some more information.
I have a question to ask in regards to being an FHA co-signer:
Me and my fiancee would like to finance a home. With her being the primary account holder because she will be a first time buyer; however her income is low, and I would like to be a co-signer because it takes our income to about 140K instead of just 60K with her alone. However, I have a foreclosure with a beacon score of 680, and the only negatives I have on my credit report are the foreclosure, and the 2nd loan mortgage is being reported as a charge off. The foreclosure is 3 years old as well as the charge off. I have been in contact with Countrywide, and they will not setup any form of a payment arrangement nor will they take a payment for the bad debt (this is what I have been told after talking to a dozen folks); so I am under the impression it has to remain on my credit.
Is it possible that I can be a co-signer on an FHA loan, with this charge off? My logic tells me it will need to be paid off but I wanted to get some more information.
Hi dalejthomas ,
Welcome to our Forum. ( :lol: :lol: :lol: )
As you say that she is first time buyer, You must know that On her loan application they will inquire very hard to pass her loan. So you have his all clear documents to submit them. If her income is low it will be reason to decline loan request. She must have good credit score & best previous financial record. If you have guaranteed that she will pay the loan so you can be co - signer for her.
If you have old credit score when they inquire for co - signers credit score i think they would not be agree with 3 year old credit score . They will ask you for the latest credit score. So you need to give them your best & latest credit score report to pass her loan & to be co - signer.
Thanks & Regards.
Welcome to our Forum. ( :lol: :lol: :lol: )
As you say that she is first time buyer, You must know that On her loan application they will inquire very hard to pass her loan. So you have his all clear documents to submit them. If her income is low it will be reason to decline loan request. She must have good credit score & best previous financial record. If you have guaranteed that she will pay the loan so you can be co - signer for her.
If you have old credit score when they inquire for co - signers credit score i think they would not be agree with 3 year old credit score . They will ask you for the latest credit score. So you need to give them your best & latest credit score report to pass her loan & to be co - signer.
Thanks & Regards.
Hello Sam,
My Latest credit score is 680. It is not my old one.
My Latest credit score is 680. It is not my old one.
OK its not a bad credit score to be co signer. You can be co signer for FHA ( Federal Housing administration ) Loan.
Best of luck.:D :lol
Best of luck.:D :lol
First, you do not have to be a first time homebuyer to be the primary borrower on an FHA loan, so I assume you want the first time homebuyer there for the income tax credit. (Although this is something you already know, I want to make sure others reading this don't think FHA is only available to first time homebuyers).
If the date on foreclosure is over 3 years old then it is old enough for you to be eligible for an FHA loan. This is a minor clarification, but you would be a co-borrower on the loan and not a co-signer. FHA has a very specific definition for a co-signer and co-signing is not allowed.
FHA does not require all collections to be paid off, but any individual lender/underwriter may require it. If you have a good explanation for the foreclosure situation, it is doubtful that you would be required to pay it off.
If the date on foreclosure is over 3 years old then it is old enough for you to be eligible for an FHA loan. This is a minor clarification, but you would be a co-borrower on the loan and not a co-signer. FHA has a very specific definition for a co-signer and co-signing is not allowed.
FHA does not require all collections to be paid off, but any individual lender/underwriter may require it. If you have a good explanation for the foreclosure situation, it is doubtful that you would be required to pay it off.
Thank You Carl. This was really helpful information.
i'm also thankful that carl interrupted gunzi's flow. gunzi: please do some homework and learn enough to make your answers make sense. what you've told this original poster is of no use to him.
rather than guess have some one run run your scenario through underwriting system
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