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Can my parents co-sign on a loan with me?

I don't have the income or credit score to get a loan on my own, but I have the down payment. Can my parents co-sign on a loan with me so I can qualify? by Harry_Landon from Fargo, North Dakota. Jun 14th 2013 Reply


Manuel Gonzalez (mmortgage1)
#91 ranked lender in New Jersey - 90 contributions

Yes they can. You have two options, FHA or Conventional.If you go FHA minimum down payment is 3.5% Conventional you can go as little as 5% some programs allow as little as 3% down, depends on what you are using them for. Income, additional assets, etc.

Jun 14th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,092 contributions

The basic answer is yes. But in mortgage lending, there is no such thing as co-signer. There are only co-applicants. Everyone is 100% responsible for the loan. All applicants income, credit, assets, and debts will be reviewed to determine overall qualifications. The fact your income is too low to qualify is exactly what co-applicants can help with. On the other hand, bad credit, or no credit is a different story. Good credit applicants can not be used to offset bad credit or no credit applicants. Because you have no credit, your only real option is an FHA loan where your lender will attempt to establish alternative credit based upon items you pay, but normally don't appear on credit reports, like gas or electric bills. Most lenders no longer offer alternative credit options. Contact a local mortgage broker in the Fargo area, and good luck.

Jun 15th 2013
2
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,092 contributions

The basic answer is yes. But in mortgage lending, there is no such thing as co-signer. There are only co-applicants. Everyone is 100% responsible for the loan. All applicants income, credit, assets, and debts will be reviewed to determine overall qualifications. The fact your income is too low to qualify is exactly what co-applicants can help with. On the other hand, bad credit, or no credit is a different story. Good credit applicants can not be used to offset bad credit or no credit applicants. Because you have no credit, your only real option is an FHA loan where your lender will attempt to establish alternative credit based upon items you pay, but normally don't appear on credit reports, like gas or electric bills. Most lenders no longer offer alternative credit options. Contact a local mortgage broker in the Fargo area, and good luck.

Jun 15th 2013
1
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,894 contributions

YES. You will want to use an FHA loan. FHA allows what is known as a non-occupant co-borrower. This would be your parents. Underwriting guidelines call for the use of all income and all credit. I have closed several loans where the only income used is that of the non-occupant co-borrower. You will have to meet the minimum credit standards, which should be easy unless you have accounts you have not paid timely. Work with a local Mortgage Mortgage Banker/Broker rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Jun 16th 2013
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,894 contributions

YES. You will want to use an FHA loan. FHA allows what is known as a non-occupant co-borrower. This would be your parents. Underwriting guidelines call for the use of all income and all credit. I have closed several loans where the only income used is that of the non-occupant co-borrower. You will have to meet the minimum credit standards, which should be easy unless you have accounts you have not paid timely. Work with a local Mortgage Mortgage Banker/Broker rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Jun 16th 2013
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