Who can be a non-occupant co borrower?

Who can be a non-occupant co borrower?

A non-occupant borrower is anyone, such as a parent, who is willing and financially able to be a borrower on the mortgage, but who will not live in the home. A millennial couple is buying their first home, and his mother would like to help.

Can a friend be a non-occupant co borrower?

FHA non-occupant co-borrower loans allow close friends and family members to purchase homes for each other at the same low FHA mortgage rates as are available for other FHA loans.

Can you have a non-occupant co borrower on an investment property?

A non-occupant co-borrower is a person who is related to the main borrower. A non-occupant co-borrower income can be used to qualify on conforming loans. The non-occupant co-borrower will go on the mortgage note but the non-occupant co-borrower will not go on title to the property.

Can you have a non-occupant co borrower on a second home?

This is called a “non occupying co borrower”. Therefore, a borrower may be added to the loan in order to help the primary borrower qualify for the mortgage. The additional borrower is not required to live in the property. Keep in mind, USDA and VA loans do not allow non occupying co-borrowers.

Can a spouse be a non-occupying co-borrower?

Your co-borrower can be a spouse, parent, sibling, family member, or friend as an occupying co-borrowers or a non-occupying co-borrowers. Usually, a spouse would be an occupying co-borrower, because they will live in the property with you.

Can a spouse be a non occupying co-borrower?

What does non borrower mean?

When two or more people are purchasing a property, one or more of them may not be financially obligated to repay the loan. A person who is an owner but does not have an obligation to repay the loan is sometimes referred to as a “non-obligor” or “non-borrower.”

Can a non borrower be on title on FHA loan?

FHA loan rules state clearly: “Non-applicant individuals can have an ownership interest in the property at the time of settlement without executing the mortgage note and security instrument, regardless of whether the transaction is a purchase or a refinance.”

Can a non borrower be on a mortgage?

A person who is an owner but does not have an obligation to repay the loan is sometimes referred to as a “non-obligor” or “non-borrower.” Usually, the lender’s only requirement is that the non-obligor owner must sign the mortgage and a few ancillary documents at closing.

Who is not eligible for FHA loans?

A borrower is not eligible to participate in FHA-insured mortgage transactions if he/she is suspended, debarred, or otherwise excluded from participating in HUD programs. an exception exists as noted in HUD 4155.1 4. A.