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Co-signer Question

I currently have a home in another state that I am in the process of selling, however, although I have a buyer already living in & renting the house, it is not "sold" as of yet. I have found a great buy at my current location, but due to the fact that I am recently retired and have a mortgage already, I cannot qualify for a loan on my own. My daughter has offered to co-sign the loan --- she has a very good income and only one very small debt. However, the bank will still not loan us the money stating that the debt to income ratio is too high. My question is, how much of the co-signer's income counts? In my case it would appear to be very little. My daughter could easily qualify for the loan on her own, if this was going to be a her primary residence. She could also qualify for a loan to buy the house as an investment property, but would have to put down 20% which is not feasible at this time.Any insight on how this whole co-signer process works would be greatly appreciated. by sherry1951 from Raleigh, North Carolina. Dec 14th 2009 Reply


Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 142 contributions

It sounds like the bank doesn't know the guidelines. Based on your situation I believe an FHA loan is just the loan you need. Guidelines allow a non-occupying co-borrower to apply with you. I would search for another lender that is FHA approved.

Dec 14th 2009
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Angelo Datseris (Angelo Datseris)
#2 ranked lender in North Carolina - 22 contributions

The loan you need is called a Non occupant co borrower. That will allow you and your daughter to be on the loan and qualify. please email me at angelo@lendwithleverage.com or you can call toll free at 1-877-456-LEVEAngelo Datseris, CRMSPresidentLeverage Lending Group, LLC

Dec 14th 2009
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Steve and Eleanor Thorne (Eleanor Thorne)
#1 ranked lender in North Carolina - 27 contributions

Not all banks offer FHA loans, however, it is the program that you are looking for! They only require 3.5% downpayment, they allow for non-occupying co-borrowers, they allow retirement income to be "grossed up" (since it's not taxed) and since you've relocated, they will allow part of the rental income to be counted to qualify! Steve and Eleanor Thorne First Financial Services 919-851-3031 x 104

Dec 15th 2009
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Tony Scott (Tony Scott)
#18 ranked lender in Florida - 3 contributions

You'll qualify for the new loan. The sale needs to close first. If you can show proof via lease and utility bill we are able to get a exception.Tony321-278-0433

Dec 16th 2009
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