FHA Non Occupying Co-Borrower
FHA Non Occupying Co-Borrower rules in a nutshell.
Typically called a ‘Kiddie-Condo’ loan. FHA allows family members to help their kids buy their first home. Whether they are in school with no income or out in the real world and just need a little extra income to qualify.
FHA allows for a family member to be a non-occupying co-borrower in order to assist in qualifying. This is available when your borrower would qualify for the loan when considering their credit but they wouldn’t qualify because of debt ratios, employment, income and assets.
Adding a NOCB does not resolve credit issues!! The occupying co-borrower must be credit worthy or have no credit at all. Bad credit will kill the deal. No credit - no problem.
The occupying co-borrower does not have to be employed and does not have to invest in the transaction.
The DallasLoanGuy Originates, Processes, Underwrites, Closes & Funds FHA Loans in-house. We offer manual underwrites down to 580 FICO.
Tom Burris
DallasLoanGuy.com
Dallas, TX
“A Home Loan for Every Texan”
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!