FHA First Time Home Buyer Cosigner Kiddie Condo Loan

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!

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One response to “FHA First Time Home Buyer Cosigner Kiddie Condo Loan

  1. Pingback: FHA Co-Signers & Co-Borrowers Continued 411 Mortgage Loan « Virginia Mortgage & Loans 411

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