Re: FHA loan question
01-25-2013 11:49 PM
1) Yes, you can have a non-occupant co-borrower for an FHA loan.
2) However, as pointed out, he has to qualify for the loan too. His tax liens are a problem, unless he has been making payments on them and can show at least 6 months of on time payments.
3) Can't you prove your income via your tax returns? Or has your accountant been too aggressive?
4) Your father can gift you a large lump sum and you can go to a company like TrustCo that handles portfolio loans for these type of situations. TrustCo is a regional bank. The loan is a conventional loan and not sold on the secondary market. The rate is a good rate too, but the residence has to be a primary (like you want it to be).
Also, to number one - there is a difference between a co-borrower, and cosigner. A coborrower is on the deed, the cosigner is not. FHA allows both.
I havent done a loan in several years where the lender would allow a cosignor.
If you are on the application you can almost bet the house you are a co-borrower.
What FHA says and what the Lenders say are a whole different story.
Just think of scores as an example, while one Lender will accept a 580 minimum FICO credit score, and other Lenders a 620, and most 640, while some are even at 660, FHA score requirements are even much lower. FHA allows lower scores, but trying to be approved with a lower score in todays market is non existent.
Another Clarification, just because you are Co-Borrowing on a home loan does not mean you are on the Deed. Any one can be added to a Deed, or not added to a Deed.
I can honestly say I am not very versed on the subject but this is something I have looked into with great detail with the 2 agents in my office, LO and online... A co-borrower must be a live in person, while a co-signer is someone that does not live on the property. The co-borrower is on the deed, while the co-signer is not. I've literally read this on every website I've researched and that is what I was told prior to even looking into it. (I know FHA has the rules of how long you must live at the property without renting and what-not.)