Many conventional mortgage programs either don't allow or restrict the ability of a borrower and co-borrower to come together on a loan application and become one.  FHA again comes to the rescue.  In fact, FHA does allow for it.  You must use the lower of all of the borrower's credit scores.  Financially the loan is underwritten using all incomes and all debts.  There is no provision requiring the co-borrower to occupy the home. 

Also, the pricing on the loan is that of an owner occupant.  There is no up charge in the mortgage rate nor any additional financial contribution of the borrowers beyond the required 3%.  Often we will see a parent who wants to help their child.  This is a perfect scenario for a first time buyer who might be planning on having roommates but can't document the prospective rent or someone who is self employed and can't verify the income. 

Before you think you can't buy a home, make sure you exhaust all options.  Obtaining a co-borrower may be easier than you think.  You just need to ask.  Many people will do this to purchase an intial home, and later turn around and refinance to remove the co-borrower from the mortgage note.

We finance FHA mortgages in MN.  We welcome the opportunity to help you figure out the most appropriate form of financing-whether you are a first time buyer or you are purchasing your dream home.

Venture Development-Minnesota's Premier Mortgage Broker