One of the nice features of FHA loan guidelines are they allow for a non-occupant co-borrower to help a borrower qualify for a FHA loan. This co-borrower does not have to live in the property, but their income can be used to help a borrower qualify for a FHA loan if a borrower is having trouble qualifying on their own.
The way this works is when we take the FHA loan application, we will also take all the non-occupant co-borrowers information including their income, assets and credit info. All this information will be combined with the borrowers when the loan is submitted for FHA loan approval. So the non-occupant co-borrowers debt obligations will also be included in qualifying for the FHA loan. The best non-occupant co-borrower would be someone with a good income, credit and limited debt obligations.
So if you are looking to get a FHA loan anywhere across the state of California, it may help in more expensive areas like Los Angeles, San Diego, San Francisco, San Jose and Orange County to find a non-occupant co-borrower to help you qualify for a 3.5% down FHA loan in California.
If you have any questions about this FHA loan guideline or others, give us a call and we can help you get pre-approved for a FHA loan.
Sr. Loan Officer (FHA, VA and conventional loan specialist)