FHA has a unique qualification / underwriting guideline, that allows you to purchase a home, with a relative that does not live in the house… “The FHA Non-Occupying Co-Signor Program” is sometimes, referred to in the Mortgage Industry as a “Kiddie Condo,” because frankly it’s perfect for purchasing a house for kids in college!
Instead of renting a dorm, many NC parents put the student on the mortgage loan and purchase a house, splitting the rent with others! We also use this program for 55+ adults who having aging parents who can not, for whatever reason, qualify to purchase a home – and the child helps the parent qualify for a mortgage loan.
Quite often First Time Homebuyers have a need for someone else to be on a mortgage with them in order to qualify to purchase a home. Additionally, we see situations where onespouse has a credit issue, and while the other spouse has great credit scores (maybe one had a foreclosure or short sale), they can’t qualify for the new house on their single income. In each of these cases, we refer clients to the FHA mortgage loan program, because of it’s common sense underwriting approach. [Read more...]