One of the great things about FHA loan requirements is they allow for non-occupant co-borrowers. This means if you are having trouble qualifying for a FHA loan on your own and you have someone you know that would be willing to be a co-borrower to help you qualify for the loan, you may in business.
A non-occupant co-borrower is a borrower that will be on the loan but does not have to live in the property. This person can be a co-borrower on the loan and add their income and their cash reserves to the loan application to help your qualify, but they do not have to move into the property. This can be very helpful for new college graduates or others having trouble qualifying for a FHA home loan on their one.
Keep in mind the FHA loan guidelines for non-occupant co-borrowers take the lowest of the middle credit score of all the borrowers. So if you are the borrower and have a low credit score, it will not help you even if the non-occupant co-borrower has a high credit score. Also, FHA home loan requirements will take all the income from all the borrowers and all the debts from all the borrowers to calculate the debt-to-income ratio on the loan.
I hope this gives your some ideas to help you qualify for a FHA home loan if you are having trouble on your own. Don’t hesitate to call me at 858-922-7899 or email me at firstname.lastname@example.org if you have any questions.
Sr. Loan Officer