Articles Tagged With: Cosigner

May 23, 2011

FHA Loans: The Difference Between a Co-Borrower and a Co-Signer

When applying for an FHA home loan, a borrower does not have to share the financial responsibility for the mortgage all by themselves. FHA rules allow a co-borrower or co-signer to apply alongside the borrower. In some cases this can improve the FHA loan applicant’s chances of getting a loan approved, and it’s also a way for a borrower with established credit to help a co-borrower become a home owner under the proper circumstances. It’s easy to assume a co-signer and co-borrower are the same thing, but in the eyes of the FHA and the lender, these are two separate terms. Co-signers don’t have the same benefits as co-borrowers, though they may share the same responsibilities in many cases. According to the FHA, “Co- borrowers take title to the property | more...

May 12, 2011

FHA Rules on Non-Occupying Co-Borrowers

By Joe Wallace

In our last blog post we discussed FHA options that apply to military members who might explore FHA insured loan options when a VA loan isn’t available. Military families often face unique circumstances which affect the ability to meet some obligations as an FHA home loan applicant. For example, a military member could be sent to a war zone for an extended period of time–which could lead to worries about fulfilling FHA occupancy requirements. Such situations are usually covered under FHA rules and don’t necessarily mean problems with an FHA mortgage. FHA rules also address circumstances a borrower might find themselves in when applying for an FHA insured loan with a non-occupying co-borrower. Did you know FHA requirements state that all non-occupying co-borrowers and/or co-signers must have a principal residence | more...

April 29, 2011

FHA Loans: How Does the Bank Approve FHA Loan Applicants?

By Joe Wallace

There are many types of FHA insured loans available for single-family residences. Borrowers can apply for a traditional home loan with a down payment, fixed interest rate and a 15 or 30-year mortgage. But there are plenty of other loans which can be applied for including; Section 203h Insured Mortgage for Disaster Victims Section 255 Home Equity Conversion Mortgage (HECM) Section 203k Rehabilitation Mortgage Energy-Efficient Mortgage Program (EEM) Adjustable rate mortgages Section 248 Indian Reservations and Other Restricted Lands Title I Home Improvements Regardless of what loan product is preferred, for new purchases and many FHA refinancing options, borrowers must fill out an application giving information that includes employment and residence history, detailed accounts of outstanding debts and monthly financial obligations and much more. The FHA requires this information in | more...

January 12, 2011

FHA Refinancing: Basic Rules for Cash-Out Loans

By Joe Wallace

FHA refinancing loans are excellent options for those who want to lower their interest rates, monthly payments or take advantage of the equity built up in the property. There are two basic kinds of FHA refinancing options for qualified borrowers. The FHA defines the two in the simplest terms as "cash out" and "no cash out". For cash-out refinancing there are two "tiers" a borrower can consider. One is for a refinancing loan limited to 95% of the value of the home as appraised.