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1st time home-buyers with conventional loan AND non-occupying coborrowers

by vikki._597_671 from Oak Forest, Illinois. Oct 5th 2012 Reply


Barb Lanis (BarbLanis)
#70 ranked lender in Illinois - 663 contributions

Vikki: If Freddie already corrected the water problem, then why can't you go FHA? Did you have the appraisal done yet? Going FHA is probably the only way you can do this with a non-occupant co-borrower. Conventional is very difficult because the occupying borrower must be able to afford the home on their own - the co-signer just adds strength to the profile. I am an Illinois lender in Schaumburg. Feel free to contact me with questions.

Oct 6th 2012
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Not sure why the question didn't save or I can't edit on this site but heres all the info...Already pre-approved for an FHA (yay!). Problem is the home we are interested in is not FHA approved due to water damage in the basement. Freddie Mac already corrected the problem and removed everything down to the cement and bare walls. The question is, is the conventional loan for 1st time home buyers with the 3.5% down accepted if there are non-occupying co-borrowers?

Oct 5th 2012
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Anthony Battista (Anthony_Battista)
#75 ranked lender in Illinois - 14 contributions

Vikki,As far as I know there is not conventional program that only requires 3.5% down, unless you have a spacific bank that will offer that program. I work with a bank that offers a 97% ltv (3% DOWN) lender paid MI program, but the rate is going to be a little higher depending a couple of other compensating factors(credit, reserves, ect..). If this is somthing you might be interested in let me know and we can see if you qualify. My email is Tony@greatmortgagecompany.com.Good Luck, Anthony BattistaLoan Officer Great MortgageNMLS# 397880

Oct 5th 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

There isn't really a question here, so I am really writing to correct an answer: YES, you CAN have a non-owner occupant on a conventional loan.

Oct 6th 2012
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Equitus Mortgage (EquitusMortgage)
#65 ranked lender in Washington - 39 contributions

Hi VikkiYou can get a conventional loan with a non-occupying co borrower.

Oct 6th 2012
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

Since you are wanting the benefits of an FHA Insured home loan with 3.5% down payment and usage of a non-occupying co-borrower, you would be best advised to seek out an alternative property. Otherwise, look for a HUD approved lender who has an investor that allows for a non-occupying co-borrower on an FHA 203(k) Rehabilitation loan. Good luck.

Oct 8th 2012
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