Co-signer for your FHA Construction Loan.

If you are planning on building a new home, and have been told you don't make quite enough to qualify, you may want to consider getting a co-signer. FHA doesn't want you to spend more than 43% of your monthly income on your new home payment and all other debt service. For a young, growing, family that can be a challenge.

FHA will allow a family member to co-sign the loan with you as a non-occupying borrower. FHA will take everyone's income and everyone debt into consideration when applying the 43% debt-to-income limit.

Keep in mind that all applicants must meet FHA credit qualifications. A co-signers good credit can not overcome a borrower's poor credit. As always, call me to discuss your situation.

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Comments: 3
  • #1

    Lindsay Waters (Sunday, 03 September 2017 23:18)

    I have some questions about a Co-Signer FHA Construction loan.

    What is the credit score min for the borrow?
    My grandfather has great credit and is willing to co-sign with me. Can he do that?
    Will it get me a better interest rate?

  • #2

    Jerry Thomas (Monday, 04 September 2017 14:46)

    Lindsay, co-borrowers are great for overcoming high debt-to-income issues but a co-signer's good credit does not negate a borrowers bad credit. If you only want to put down 3.5% you will need at least a 620 credit score. FHA allows for credit scores down to 530 that does mean you will be approved and you will have to pay a higher rate and fees. Shoot me an email at with your contact info and we can discuss your situation.

  • #3

    development finance Australia (Saturday, 16 December 2017 12:24)

    Thanks for sharing this information with us. Keep posting and keep sharing like this.