Co signer on FHA loan

Too much info missing.. Why do you need a cosigner?? Cosigners help people with no credit or limited credit or not enough income.. If you're trying to buy a home that is more than you can afford on your own, how will the cosigner help you.. Are they going to help make the payments monthly?? If you make $25K a year, you would still qualify for a $125K home on your own.. Having the cosigner could increase how much home you will qualify for, however the primary responsibility to make the payments will be yours.. If you cannot afford the payments on your own, then you shouldn't be looking at a more expensive home than you can actually afford!! But to answer your question.. Yes.. if the cosigner refinances their home first, it will lower their mortgage payment, in turn lowering their debt to income ratios, allowing them to help you qualify for more home... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

I think the biggest issue that you may face is that your co-signer took a year off work. If she was in college or vocational training and can prove that, then no worries. We are to show 2 years consistent employment in order to use the income and it also needs to be in a similar line of work - unless the person was in school. Assuming the school hurdle can be jumped, then I suspect your lender feels that the co-signer doesn't add enough "value" in terms of income vs. debt on your loan and has suggested that she lower her own personal debt to make your loan work. She really would have to do this before your loan can get approved and yes, it will delay your purchase closing. My suggestion, reduce your grief and see if you can find another co-signer. Remember, it must be a relative.

The only down side to this scenario is that you will need to classify it as an investment property. If you would like to discuss your options give me a call. 888-320-7888 - Ken

Amoureux: Please be certain beyond a doubt that there are no issues with her being off work. That could be a deal killer for you. You didn't mention her line of work previously and the reason for her break in employment. There are some scenarios that work.