Non-Occupant Co-Borrowers

One of the great benefits with FHA Loans is that the home buyer or homeowner can add a non-occupant co-borrower to qualify for a home loan.  Refinancing Non-Occupant Co-Borrower Off FHA Loan can be done in six months after closing of the original FHA Loan. Home buyers who cannot qualify for a FHA Loan due to higher debt to income ratios or due to not having documented income or little to no income can now have the opportunity to qualify for a FHA Loan as long as they can have a family member and/or relative and/or close friend to be their non-occupant co-borrowers. Non-occupant co-borrowers do assume the risk of their credit going bad if the main borrower is late on their mortgage payments or if the main borrower defaults on their home loan.  The good news with non-occupant co-borrowers is that they are able to help a family member become homeowners and being a non-occupant co-borrower will not affect the chances of the non-occupant co-borrower from qualifying for another home loan after one year.  The main borrower can get the non-occupant co-borrower off by refinancing non-occupant co-borrower off FHA Loan in six months after the closing of the original FHA Loan.

Can A Non-Occupant Co-Borrower Qualify For Another Home Loan?

If you are a non-occupant co-borrower and you want to buy another home in the near future, you being a non-occupant co-borrower will not hinder your chances of qualifying for another home loan.  If you are buying a home in the near future and you are currently a non-occupant co-borrower,  the mortgage loan that you have co-signed for will not affect you in your debt to income calculations as long as you can provide proof that you are not responsible for the home loan that you are a non-occupant co-borrower.  This is easily done by providing 12 months canceled checks or bank statements from the main borrower reflecting that the main borrower is the person making the mortgage payment and not you.  Any mortgage and housing payment will be exempt from your debt to income ratio calculations.

Tips On Refinancing Non-Occupant Co-Borrower Off FHA Loan

Refinancing Non-Occupant Co-Borrower Off FHA Loan can be done as early as six months from the original closing date of the FHA Loan.  With FHA Loans, there is a minimum six month seasoning requirement to do a rate and term refinance mortgage and a one year seasoning requirement to do a FHA cash-out refinance mortgage loan.  If the main borrower qualifies with income and can go on the refinance FHA Loan by themselves without needing the income of the non-occupant co-borrower, then refinancing non-occupant o-borrower off FHA Loan can be done as early as six months.  If the homeowner needs a cash-out FHA mortgage loan, then they would have to wait 12 months.  Most non-occupant co-borrowers eventually want their names off the mortgage loan of the main borrower.  If you are a homeowner who is interested in refinancing non-occupant co-borrower off FHA Loan, please contact me at gcho@gustancho.com or call me at 262-716-8151.  We are available 7 days a week and we a FHA approved lender with no lender overlays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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