I co-signed on a FHA loan with my dad and my income is 1,400 month, will I be able to purchase my own home?

Asked by Janice Dixon, Indianapolis, IN Sun Nov 23, 2008

Is there a program out there that I can use, because I know that you cannot have two FHA loans. My dad is on a fixed income, will the bank take that into consideration?

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6
Tom Vornholt, , 46181
Mon Nov 24, 2008
BEST ANSWER
Janice...Here is some info from an FHA lender - "As a co-signer this client is fully obligated for the loan with her dad. The entire monthly payment will count against her DTI (debt-to-income ratio) for a conventional or FHA loan. $1400 per month will allow housing ratio no more than $420/month and she will be capped $700/mo for all debts assuming her credit evaluation will allow a loan.
Another loan option is the now nearly non-existent Stated Income loan. A substantial down-payment (30-50% down would be required). Credit would still be evaluated for ability to repay."

Please let me know if you have any other questions.
0 votes
Dave Woodson, Agent, Valparaiso, IN
Sat Feb 21, 2009
As long as you can show that you have not made the payment in at least 9 months and you can qualify for a FHA loan you should be able to get one. I would highly suggest you call a mortgage broker as they seem to be the most knowledgeable when it comes to FHA and having been a co-signer.

Dave Woodson
(219)872-8000
The Mad Mortgage Machine
0 votes
Pete George, Agent, Carmel, IN
Mon Nov 24, 2008
Hi Janice,
As my fellow professionals have stated, you must contact a mortgage broker to review your options. I have a couple I higly recommend. Please give me a call so I can be of assistance. Thank you!

Pete George
Century 21 Scheetz
317-702-2881 - Cell
pgeorge3@c21scheetz.com
http://www.buygeorge.biz
Web Reference:  http://www.buygeorge.biz
0 votes
Mariam Rahma…, Agent, Indianapolis, IN
Mon Nov 24, 2008
Janice,

You will need to speak to a mortgage broker who can provide FHA loans and fully understands the requirements. I use and recommend Chad Fallis with Langdon Mortgage 317-844-2250. Once you are approved seek a Realtor who understands the requirements (during inspection, etc) and sticks with your comfort price range. Feel free to contact me if you have any questions.

Sincerely,

Mariam Rahmani
0 votes
Cameron Piper, Agent, Forest Lake, MN
Sun Nov 23, 2008
Janice,

You will need to qualify for both loans in order to get a new one. In other words, if your dad can't pay you will need to be able to show the bank that you can still make the mortgage payment on your new place and the one that your dad bought. Unless you have a fantastic income or live well below your means, that will not be an easy thing to do. Joe is right you should seek the advice of a competent mortgage professional and see what they have to say.

Cameron Piper
Web Reference:  http://www.campiper.com
0 votes
Joe Shoemaker, Agent, Indianapolis, IN
Sun Nov 23, 2008
Janice:

Your ability to purchase will be based on your debt, your income, your credit score and a variety of other factors. Your mortgage lender will be able to more accurately answer your concerns.

Good luck.

joe shoemaker
Web Reference:  http://www.macduffrealty.com
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