Question Details

Tom Priester, Real Estate Pro in Tequesta, FL

Question about co-signer for your mortgage pros.

Asked by Tom Priester, Tequesta, FL Wed Mar 16, 2011

I am working with a client who wants to put down 20% on a primary residence but will need her parents to co-sign and will not be residing there. Is an FHA loan her only option and what are the PMI requirements if 20% is put down?

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Answers

6
If it is an FHA, unless you go with a 15 year fixed, you would still have to pay PMI.

Unless things have changed in the last month, you can do it with Freddie Mac.
0 votes Thank Flag Link Thu Mar 17, 2011
I know Fannie, and I believe Freddie too, will need the occupying borrower to income qualify on her own. So you may have to go FHA.
0 votes Thank Flag Link Thu Mar 17, 2011
BTW, Tom,

The conventional loan is NOT investor pricing either!
Web Reference: http://fglick.com
0 votes Thank Flag Link Wed Mar 16, 2011
hi..fha would work, but she can go conventional, but the ratios are usually lower...
best regards
bob mcclure
NMLS# 162592
0 votes Thank Flag Link Wed Mar 16, 2011
You can go FHA or a Freddie Mac conventional loan.

Obviously, Freddie is better since it has no PMI or property issues.

Call me at 877-282-5789 or email me, fred@usloans.com

I am licensed in FL and happy to help.

Fred
Web Reference: http://usloans.com
0 votes Thank Flag Link Wed Mar 16, 2011
Hi Tom,

FHA is her best bet because the program already allows for non-occupant co-borrowers. Otherwise, the loan will be treated as an investment property loan. There's no MI requirements if she is putting 20% down.

Best wishes,

Elva Wormley
0 votes Thank Flag Link Wed Mar 16, 2011
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