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Can Non-Occupant Co-Borrower Have A FHA LOAN
Can Non-Occupant Co-Borrower Have A FHA LOAN without getting out of being a non-occupant co-borrower when buying a new house for himself?
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1 Reply
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Yes, a non-occupant co-borrower on an FHA loan can obtain a new FHA loan for themselves to buy a home. However, they must still meet the standard FHA guidelines, including credit, income, and DTI requirements. The existing FHA loan where they are a non-occupant co-borrower will NOT be considered in their debt obligations if the non-occupant co-borrower can provide they were not responsible making the monthly payment of the main borrower. The non-occupant co-borrower need to provide 12 months canceled checks or bank statements of the main borrower to prove the non-occupant co-borrower has not been responsible in making the payments of the co-borrower for the main borrower’s payments to be excluded from their debt-to-income ratio calculations. It’s important to ensure that their DTI ratio remains within acceptable limits to qualify for the new loan.