Non-Occupying Co-Signers Are On The Increase for Purchase Transactions In Tampa
Non-Occupying Co-Signers - FHA allows a direct family member to co-sign with the buyer and still live at another property even if it is located in another State. This allows individuals who are directly related to buyers with high Debt-To-Income Ratios to Co-Sign and add additional income to the application in an effort to bring the ratios in-line with the lenders guidelines.
The Non-Occupying Co-Signer can also gift the buyer the money for the down payment or simply pay it out of their own funds.
A Non-Occupying Co-Signer has been a popular sales tool for my Realtors who cater to younger first time buyers who's incomes are still fairly low but who's parents are more then happy to help their children qualify for their first home.
The Non-Occupying Co-Signer is not allowed on the FHA 203K rehab loan.
The Non-Occupying Co-Signer can be dropped from the loan via refinancing the home back into the buyers name in as little as 1 year.
The increase may be a result of me and my Realtors marketing it more to our clients; but it has helped me get loans for 2-3 clients per month for the last year that otherwise would not have qualified for a home loan.
Sellers are still allowed to contribute up to 6% of the purchase price towards buyers closing cost.