If i co-borrow a home with my son, his 1st my 2nd, what is our best choice for a loan

It depends on the loan type. For instance if your son is applying for an FHA Loan then he would be required to have a 3.5% down payment. Before co-signing on a loan make sure you have a full understanding and implications it may have on you, your liability and credit score.ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us atwww.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710?sk=wall Or Call Anytime 513-403-6260

There are a variety of factors that affect how this type of purchase should be properly structured. One of the most important is whether you are planning to live in the property or not. I am assuming that you will be a "Non-occupying" co signer or buyer. Commonly this situation lends itself to FHA financing which is a minimum of 3.5% down payment. However you may be able to contribute that yourself if you wish. I also have some limited conventional options for this type of situation that can be much cheaper overall than FHA. They do require a minimum of 10% down however. Feel free to contact me by email at robhanson@emortgagegroup.com, phone at 240-752-7549, or you can enter info on my webpage at loansfromrob.com if you want to discuss in more detail or have other questions. Good luck!

Generally the best option for well qualified borrowers would be a conventional loan where he can put as little as 5% as a downpayment from his own funds. Otherwise, FHA is very easy with 3.5% required as a downpayment (can come from either of you) and the rates are a bit better but the PMI can be more than 2x as much - which is why the conventional is the preferred option if it fits your situation

My first question would be why are you co-signing vs. him getting the loan on his own. If he is able to that would be much better. Minimum contribution on an FHA Mortgage Loan is 3.5%.

It depends upon how much money you plan to use for the down payment. While FHA only requires 3.5%, there is a 1.75% up-front cost that is added into the loan amount. On a $300K loan that = $5,250, which equates to an extra, roughly, $25/mo. In addition, the monthly FHA MI is significantly higher than private MI, and is for the life of the loan. Interest rates can be .25% to .5% lower with FHA, however, when you take into account the up-front cost, higher monthly MI, and MI for the life of the loan, FHA isn't a very good alternative. For someone who has a reasonably good FICO score (680+), and at least 2 months of monthly mortgage payments, including property taxes and homeowners insurance, when the loan closes, he would be better off with the conventional, 5% down payment loan, if at all possible. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 46 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.