Questions Answers Essex

Can I add a Non-Occupant Co-borrower on Conventional Refinance?

Can a cosigner be added to the loan ( need additional income ) for ratios?  I noticed your conforming guidelines under LP and DU allows non-occupant co-borrower. Can you confirm if that would be the case? CASH OUT you cant add co borrower to qualify unless they live there and that is proven by all the documentation from Credit Report address history to bank statements tax returns etc.

Rate and Term you can add if they dont have history of living there

Second FHA Loan 

1. Add father back to title, then do a streamline with both borrowers. However, the daughter would be a non-occupant borrower on sfr.

2. Then she would be able to buy with another FHA loan. I think it would be one of the allowable exceptions to having two fha loans at the same time.

Can you confirm if this would work? always wait 12 mos when there is a cosigner on a note.  BUT if we did with her as NON occ Co-borrower, still need to wait 12 mos for proof other is making payments on time


I need a cosigner so that she can qualify for her owner occupied home. The cosigner is her sister that lives in the borrower’s rental property. Therefore the cosigner would be a non-occupant co-borrower.

On conventional – non occ co borrower income is not used in ratio.  only owner occupied co borrowers and if your adding them they have to have history of living together currently

Co-borrower does not have to occupy subject to the following:• Occupant borrower must qualify for loan; Manual qualification ratio 43%• Non-occupant borrower must be on separate application• Occupant borrower must verify 5% investment from own funds (waived if LTV/CLTV <= 80%)

Do I add the non-occupant co-borrower on title… before I originate the file or can she be added through our new loan? No add at close


FHA Purchase Loan with Non Occupant Co Borrower 4 Units
2 Units – 4 Units

I have a buyer that will use his parents to cosign. The parents own a home already own their own home. Parents have more than 30% equity in existing home.

Buyer: $3100 monthly
Parents: $9767 monthly ( own home and will not occupy )
Rental Income:  $1400 per unit ( estimated )

In this example above, would FHA permit the buyer to have a Mortgage of $3,100 ?

I know on Conventional loans there is an owner occupant ratio requirement of debt ratios. Is there a “payment to income requirement” from the occupying borrower on a FHA Loan? fha does not allow non occ co borrowers on 2 to 4 units  ever

FHA SFR buying with Non-Occupant borrower 

FHA Purchase Loan – SFR

Sales Price: $250,000
Monthly PITI: $1740

Freddy is self employed and declares 877 monthly income. His wife works as a bartender but is paid cash.

The non-occupying co-borrower ( Edgar and Trinidad ) are willing to serve as co-borrower for him. Edgar and Trinidad already own a property in the same area.

On an FHA loan would it be acceptable that the occupying borrower’s income be less than the mortgage payment? Does it matter on an FHA loan?  It does not typically matter however.. it has to pass the smell test.. does it appear to be a investment ? how are they related?


Can we use the income from a non-occupant borrower with no social?  No sorry to say NO CAN DO
FHA Cosigned for Previous Mortgage

The borrower has never occupied the property. He cosigned for his brother back in 2010. We can provide evidence that he has always remained renting at his current residence – and provide evidence that the property expenses have never been deducted from his taxes ( as well can get brother’s taxes showing expenses were 100% to the brother ).

However, I have attached the Grant Deed and Deed of Trust. Not sure if this will tell us whether he took the loan as non-occupant. But, loan officers rarely put cosigners as non-occupants? Must check to see how they showed their occupancy on the 1003 of previous mortgage.

Is a non-occupant co-borrower allowed on a refinance? Yes only on fhlm, Fnma no benefit in ratio


WordPress Video Lightbox Plugin