Co-signing for my daughter need help!

[jdxprs1]

I’m purchasing a home with my daughter. We were supposed to close today but got delayed because they can’t figure out the deed.

I want/need to be on the deed but the lender says I can’t be because they did the paperwork as I’m a non occupant owner.

Is this correct? Is there a way I can be on the deed?

[ShanetheMortgageMan]

What type of financing are you using?

FHA guidelines require that all occupying and non-occupying borrowers and co-borrowers must take title to the property in their own name or a living trust at settlement, be obligated on the note or credit instrument, and sign all security instruments (such as the "mortgage" or "deed of trust").   Fannie Mae also allows non-occupying co-borrowers to be on title/deed.  

If they can't figure it out, then would you be OK being added to title after closing via a quit claim deed?

[jdxprs1]

The lawyer at closing said the mortgage co could call loan due if I were added after.

It’s fha. Having me listed as co signed, they showed a rule that stated I couldn’t be on deed. It was hud 4155.1a I think

[ShanetheMortgageMan]

Check out Do I Need Bank or Lender Permission to Transfer Mortgaged Real Estate by Deed?

The 4155.1 handbook is no longer valid and has been superseded by the 4000.1 handbook.

You referred to yourself as a non-occupying co-borrower, which is probably the verbiage you were given by the lender.  A co-signer is considered differently.  The verbiage directly from the 4000.1 handbook is:

Borrower and Co-Borrower Ownership and Obligation Requirements
To be eligible, all occupying and non-occupying Borrowers and co-Borrowers must take title to the Property in their own name or a Living Trust at settlement, be obligated on the Note or credit instrument, and sign all security instruments.

In community property states, the Borrower’s spouse is not required to be a Borrower or a Cosigner. However, the Mortgage must be executed by all parties necessary to make the lien valid and enforceable under State Law.

Cosigner Requirements
Cosigners are liable for the debt and therefore, must sign the Note. Cosigners do not hold an ownership interest in the subject Property and therefore, do not sign the security instrument.

[jdxprs1]

Shane,

Is a co signer ALLOWED to be on the deed if they want to be?

[ShanetheMortgageMan]

We've always done it as a non-occupying co-borrower and they've always been allowed on title.  I am not sure who the lender chose to do it as a co-signer instead of a non-occupying co-borrower.  I can't recall ever doing it as a co-signer and them also going on title.

[jdxprs1]

Why would they have done it as a co signer instead of coBORROWER?

[ShanetheMortgageMan]

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@jdxprs1 wrote:
Why would they have done it as a co signer instead of coBORROWER?

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Not sure, you would have to ask them.  They may still be able to change it, as you haven't closed yet.