Mortgage Facts - Did You Know

FHA Non-Occupying Co-Borrower Transactions

For Non-Occupying Borrower Transactions, the maximum LTV is 75 percent. The LTV can be increased to a maximum of 96.5 percent if the Borrowers are Family Members, provided the transaction does not involve:

  • a Family Member selling to a Family Member who will be a non-occupying co-Borrower
  • a transaction on a two- to four-unit Property

Non-Occupying Co-Borrower(s) or Cosigners must either be a US Citizen or have a Principal Residence in the US.

Non-Occupying Co-Borrower(s) must take title to the property in their own name or living trust at closing, Cosigners do not.

Income from a non-occupant co-Borrower may not be used to qualify for a cash-out refinance.

For TOTAL scorecard Approve/Eligible loans, the occupying borrower does not need to contribute any income or assets to the transaction. It is acceptable for all qualifying income and assets to come from the non-occupant co-borrower or co-signer.