FHA Mortgage Allows Non-Occupying Co-Borrowers or Co-Signers to help with the loan
The reason why this is a GREAT loan is because normally a Co-Borrower must state that he/she will occupy the property with the Borrower on the loan therefore eliminating the potential of having co-signers due to the fact that the co-signers do not want to move.
FHA Mortgages although, allows a Non-Occupying Co-Borrower (Cosigner) to help in the loan process to help strengthen the loan and provide credit support and Income support as a co-borrower who does NOT HAVE to occupy the residence with the borrower.
*(Non-OCC’s)(Co-signers) can be on Refinances too but limited to 75-85% LTV rate/term & cashout)
- The Co-Signer can be ANYONE from a family member to a long time friend.
- 1 unit subject property
- Having a Co-Signer can help Qualify the borrower to Appoved Status, keep in mind though the co-signer’s credit does not replace the borrower’s credit though.
- The Borrower can do a FHA Streamline down the road to put the loan back in just their name to help ease the peace and mind of the co-signer. The FHA streamline doesn’t require an appraisal and any income documents normally.
Why this is GREAT for your children
- The parents want to help his son establish credit and provide housing for his son. What better way to do that than getting a home to help establish credit, become an investment, tax-writeoffs and of course provide housing for the son.
- A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.
- Whether in College or after College, if you need to help out your children getting a kickstart in life, please consider an FHA Mortgage to help jumpstart his life rather than throwing money away renting.
- Even better with the current market condition, you can probably snatch up a steal in a small beginner house with plenty of equity built in already.
Happy House Hunting!