Tuesday, 02 November 2010 14:35
Q: Can I have a co-signor that will not live in the house on my loan to help me qualify?
A: Yes, under certain circumstances. FHA loans will allow a “non-occupying” co-borrower on the loan if it is a family member. The primary borrower does need to meet minimum credit guidelines. The co-borrower cannot make up for bad credit of the primary borrower. Basically the extra borrower can help in the case of additional income to qualify for the mortgage. The co-borrower needs to bring good credit and low debts in relation to their income to the loan to be helpful in qualifying. The co-borrower needs to remember that this debt will show on his/her credit report also which would affect credit in a negative way if ever late or foreclosed.