Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
Re: FHA loan question

vizon wrote:

StartingOver10 wrote:

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).

 

Good luck.


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.

Good Luck
May all your dreams and wishes become a reality!
Contributor
vizon
Posts: 139
Registered: ‎01-28-2012
Re: FHA loan question

JM-AM wrote:

vizon wrote:

StartingOver10 wrote:

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).

 

Good luck.


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.)

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
Re: FHA loan question
I am not so sure about the cosigner thing you mention is possible with an FHA loan. On my FHA loan application, the additional signature blocks are for the co-borrower. There is no such thing as a co-signer option on my application. I don't know if they use different forms based on the situation, but the application looked pretty generic to me.
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Contributor
vizon
Posts: 139
Registered: ‎01-28-2012
Re: FHA loan question
Valued Contributor
Mike_B03
Posts: 1,141
Registered: ‎11-30-2012
Re: FHA loan question

Co-signer...co-borrower, doesn't really matter what they are called, bottom line is that they also need to meet the minimum qualifying credit score.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
Re: FHA loan question
Yes. I'm not sure if the term co-signer and co-borrower are interchangeable with different responsibilities for each but as Mike said, the requirements are the same as for the primary borrower.

On my actual loan app, there is one blank spot for the co-borrower, which is usually the husband or wife. The word "co-signer" is not mentioned anywhere on the document.
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Contributor
OilFieldEngineer
Posts: 100
Registered: ‎07-17-2012
Re: FHA loan question

Actually I did not show positive income for the two years previous they are looking at an average income via bank statements as they could see capital purchases such as vehicles being purchased for the corporation. They see there is income and assets but the loss which the accountant helps you make sure will show on the business is then written off as a loss carry forward for the shareholder to reduce the adjusted gross income. They stated that without the large reserves and assets they would have rejected my loan so yes a loan with showing losses on tax returns can be done but it is not an easy process only way to know is to try. 

 

And who knows I am not through underwriting yet so they still could shoot me down you never can tell but I got my first round of conditions and satisfied all so we will just have to see what the underwriter comes back with. 

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Community Leader
Senior Contributor
StartingOver10
Posts: 3,834
Registered: ‎03-06-2010
Re: FHA loan question

Vizon, if you need a lender that will do a non-occupant co-borrower for your FHA loan, PM me and I will send you the name and the number of a great LO.

Contributor
vizon
Posts: 139
Registered: ‎01-28-2012
Re: FHA loan question

StartingOver10 wrote:

Vizon, if you need a lender that will do a non-occupant co-borrower for your FHA loan, PM me and I will send you the name and the number of a great LO.


Ok, going to PM you! Thanks

Community Leader
Senior Contributor
StartingOver10
Posts: 3,834
Registered: ‎03-06-2010
Re: FHA loan question

PM sent.