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.