Many times people will co-sign for a car loan, mortgage, credit card and other types of debt for relatives or friends. When you apply for a FHA home loan in California and the FHA lender checks your credit, this debt will of course appear on your FHA credit report even though you are not making the payments.
The good news is FHA loan guidelines allow applicants a way to exclude this co-signed debt from their FHA loan qualification. To exclude debt that you are a co-borrower on from your FHA loan application, you will have to provide 12 months canceled checks or some other type of proof that someone other than you has been making the payment on the debt you are a co-signer on. Additionally, FHA loan requirements state the individual making the payments must be a co-borrower on the debt they are making payments on. So if debt appears on your credit report and someone else is making the payment but they are not a co-borrower on the debt, you can’t exclude it.
So I hope this is good news to some who are applying for a FHA home loan in California. If you have any questions or would like to get approved for a FHA loan in California please don’t hesitate to email me at homeloan8@gmail.com or call 858-922-7899.
Some advantages of FHA loan mortgages in California:
- FHA loans have the most liberal debt-to-income ratios of up to 55% allowing you to qualify for more
- FHA loan credit score does not have to be perfect. Give us a call if you think you have credit issues we are experts at helping
- FHA loans allow non-occupant co-borrowers
- FHA loan guidelines allow 3.5% down on 2-4 units owner occupant purchases
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
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