The FHA mortgage program allows for a family member to have a joint interest in a property
The ability to have a co-signer is a unique feature that is not offered in most loan program terms. The most unique feature is that the co-signer does not have to live in the property. This is called a Non-Occupying Co-Borrower. A Non-Occupying Co-Borrower is a tremendous tool for a First Time Home Buyer. This type of loan program is often referred to as a “Kiddie Condo”. For the record, the property does not have to be a condo. A “Kiddie Condo” is where a child is attending school and the parents qualify as a non-occupying co borrower.
The co-borrower is qualified the same way as the primary borrower. A detailed review of their income, assets, and credit are analyzed. The combined income, assets, and monthly liabilities of both the borrowers and co-borrowers are pooled together to determine eligibility. The property must be a one unit owner occupied property. If the property is multiple units, a minimum of 25% down payment is required. All co-signers are required to sign the entire FHA loan package.
The first step in qualifying for an FHA Loan is to speak with an FHA consultant who can analyze your unique situation. Click here to start the FHA Loan Process. You will learn how much of a house you can afford and the exact monthly payments you will have on your new home. Your consultation will involve a detailed overview of your income, down payment source, and credit history. Once you speak with a FHA Loan Consultant you will have the peace of mind knowing that you are fully approved for a new FHA Purchase Loan.