FHA Mortgage Approval With Non-Occupying Co-Borrower

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FHA News Editor - Here we post articles each week on FHA/VA Government news.

FHA mortgages go a step further in order to help consumers purchase a home of their own. Having a qualified co-borrower can make a huge difference for some borrowers when it comes to receiving FHA mortgage approval by adding strength to the most important segments of the loan file. This option is often used when a borrower cannot meet the necessary FHA guideline requirements in order to qualify for the FHA mortgage. Under FHA guidelines, non-occupying co-borrowers can be one or more individuals who are a vital part of the mortgage transaction but will not be a resident of the property. When the co-borrowers are not relatives, the maximum mortgage amount is limited to 75% loan to value, which means that the required down payment must be 25% or more.

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SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)