Posted on: 20th Sep, 2012 09:40 am
Helping son buy a home as a non-occupied co-buyer, have been prequalified (which I now know is not worth the paper it is printed on) for 300,000, 250,000 and 200,000 all scenarios we were given with the numbers via tax returns and current pay stubs. We have excellent credit, 2 mortgages later, never a late payment, numerous car loans, credit cards, etc... Son has some credit, good credit, but not enough we have now been told by our mortgage broker after trying to get a conventional and now an FHA, but have been informed that we would have to purchase the home we are under contract for as an investment ie more money for down payment, we would like to put 10% down.. We were told the concern is that we would walk away from the loan and our son could not afford the payment on his own. Question? isn't that why we are on the loan in the first place to help him qualify and pay a portion of the mortgage until he is able to on his own. It makes no sense that we would walk away, we have in over 30 years of credit history never walked away from anything and don't intend to now. Couldn't you use that excuse for any loan that is funded what if they walk away?? Should we just walk away from this deal or keep on with another lender??
FHA loans are very common for 1st time homebuyers. They allow gifted funds and closing costs, non occupant co borrowers etc. You should be able to co sign with him, as long as your income, assets, and credit are acceptable. Most any FHA lender will lend for 3.5% down for Owner Occupied with a non occupant co borrower. If your lender is dragging their feet or going back and forth, try another lender. Good luck
Hi rosco,
I completely agree with what Chris has said. FHA loans should be available at a down payment of 3.5% - 5%. It is strange enough that they are asking for a down payment of around 10%. There may be other local FHA lenders. You should contact them and try to get a loan.
Thanks
I completely agree with what Chris has said. FHA loans should be available at a down payment of 3.5% - 5%. It is strange enough that they are asking for a down payment of around 10%. There may be other local FHA lenders. You should contact them and try to get a loan.
Thanks
Hello Rosco,
It has become very hard to obtain a low down payment home loan on a conventional loan if you do not have extremely high credit scores and even then they are very difficult to obtain. A FHA home loan is an excellent alternative.
:idea:
It has become very hard to obtain a low down payment home loan on a conventional loan if you do not have extremely high credit scores and even then they are very difficult to obtain. A FHA home loan is an excellent alternative.
:idea:
Thank you for the information. We are willing to put down 10% if that will make it easier to approve the loan, the sticking point seems to be that he only has 1 tradeline open, current and on time payments, but only 1 tradeline. I was under the impression that if we were co-borrowers then our income would be included in the approval process. He also has a history of rent payments, except for the past 4 months when he moved in with us, but he did pay these with cash, his former landlord has said he will write a verification letter for him. I just feel as if we have gotten conflicting information. Just sent off info to a local direct FHA lender that I spoke with last night, no guarantees, but he thought he may be able to do something with our situation. Will keep you posted.