FHA Mortgage Allows Non-Occupying Co-Borrowers

A Co-Borrower on many Conventional Loans must state that the Co-Borrower occupy the property therefore eliminating parents trying to co-sign on a deal because they want to reside in their current residence.

FHA Mortgages allows a Non-Occupying Co-Borrower to help in homeownership from a family member to help strengthen the loan. (Non-OCC's can be on Refinances but limited to 75-85% LTV rate/term & cashout)

• The Co-Borrower must be a close family member or demonstrate a long-standing family relationship with the primary Borrower. If no such relationship can be verified, the LTV cannot exceed 75%.

• The subject property is a 1 unit, single family detached, PUD, or an approved condo unit.

• Co-Borrower must have a pimary residence in the United States of America.

• Having a Non-Occupying Co-Borrower does not wash out the Borrower's bad credit (keep in mind)

Why this is GREAT for your children

I just got a Loan Approved for a family who has a son attending UVA in Charlottesville, Virginia. While attending school he also got an internship for a major corporation in the area, after finishing his degree he will be hired full time, so naturally he plans on staying in the area.

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.

This made perfect sense and the perfect sense loan for my clients was an FHA Mortgage that allows a Non-Occupying Co-Borrower.

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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Just-In-Time's Loans - Mortgage Needs and Advice on Time. (757-228-3668)