FHA Non-Occupant Co-Borrower

Mom and Dad can help you buy a home.  No, let me restate that:  Mom and Dad can buy a home with you.  FHA has a special provision that just might be perfect for your situation.  No, let me restate that, too.  It isn't perfect, but it's a great solution when you and your folks really want you to own a home but you don't have enough income to qualify for a mortgage.

Here's how it works, it's quite simple:  FHA allows for a Non-Occupant Co-Borrower.  That's your folks, either one of them or both.  FHA will look at your income plus your folks' income, your debts plus your folks' debts, and your credit and your folks' credit.  FHA will treat you all like one buying entity - kind of like a married couple buying a home.  But Mom and Dad aren't going to live with you, right?  Because that's the whole point of buying this home, so you can have your own place and they can have their home to themselves.  So Mom and Dad are Co-Borrowers - they're going to own the home with you.  But they are Non-Occupants - they aren't going to live in it.  And FHA is perfectly happy with that arrangement.

If you think this solution is something you ought to explore with your folks, talk with my Lending Partner and get the details.

Here's something else to consider:  Your folks no doubt own a home, so they're not first time home buyers.  But you are.  When your folks are non-occupant co-borrowers with you, and you are a bonafide first time home buyer, you can qualify for the Home Buyer Tax Credit of up to $8,000 !!!  Cool, huh?  Thanks Mom & Dad.

How else can your folks help you get a home?  Here are a few more ideas