FHA Loans: Using a Cosigner to Qualify

Learn how mom and dad can help me buy a house.

Woman holding a cosigner folderYour neighbor tells you about a fantastic house that has to be sold. The home is an absolute bargain. There's just one problem: you don't make enough money to buy a home. Does this sound familiar?

The mortgage application procedure may be difficult and time-consuming. Obtaining a credit report from each of the three main credit reporting agencies is the first step in being eligible for a mortgage. You may get an indication of your credit score and the loan amount you could be eligible for by doing this.

Be careful to include the mortgage insurance when creating your budget, as it is also necessary for FHA loans. When you've finished your research, choose a mortgage lender. Before making a choice, be sure to comparison-shop and evaluate interest rates and costs.

One of the advantages of an FHA mortgage loan is the flexible cosigner requirements. The FHA will allow a co-signer on the mortgage application if they satisfy the FHA eligibility requirements.

Adding a co-signer may help a home buyer qualify for the mortgage in certain cases. If the borrower's income is too low or monthly obligations are too high, adding a co-signer or co-borrower may help get mortgage approval.

Mortgage lenders are concerned about the borrower's credit score. In the loan analysis, the lender will always use the credit score of the borrower (or co-signer) with the poorest credit. A co-signer or co-borrower will not assist you if you have a poor credit history or below-average credit.

Co-borrowers are qualified in the same way as the primary borrower and will sign the mortgage application.

FHA Cosigner Requirements

If you are looking to get an FHA home loan without a cosigner, you will need to meet the credit history and income requirements on your own.

However, if you are not able to meet these requirements, you may be able to get an FHA mortgage with a cosigner. There are a few requirements that your cosigner will need to meet in order to be eligible.

First, they must have a strong credit score. They will also need to have a steady income and assets that can cover the loan in case you default. Additionally, your cosigner must be a U.S. citizen or permanent resident alien.If you have a cosigner that meets all of these requirements, they can help you get an FHA loan even if you don’t have the ideal financial situation. Having a co-signer is a great way to increase your chances of getting approved for an FHA loan.

Can a Parent Cosign on a FHA Loan?

Parents cosigning the mortgage applicationIf you are a first-time homebuyer, chances are you will need to look into getting a mortgage. And, if you have bad credit, you may not be able to qualify for a conventional mortgage.

In this case, you may need to get a Federal Housing Administration (FHA) loan. But, can a parent cosign on an FHA loan? The answer is yes! If your credit is not good enough to qualify for an FHA loan on your own, a parent or other relative can cosign on the loan with you.

This will help you to get approved and avoid having to get a more expensive private loan.

Keep in mind that, as the cosigner, your parent will be responsible for making sure the mortgage payments are made on time. If you default on the loan, they will be held responsible. So, it is important that you make sure you can afford the monthly payments before taking out an FHA loan with a cosigner.

Who Can Cosign on a FHA Loan?

A co-signer should have a consistent source of income and a two-year employment history. The co-signer must satisfy the same credit and income requirements as the borrower applying for a mortgage.

Eligible cosigners include:

  • Ex-spouses and spouses
  • Parents
  • Siblings
  • Stepchildren and children
  • Uncles and aunts
  • Cousins
  • Close friends who have a long history of relationship

The co-signer must be a US citizen. Thus, even if the person is a family member, if he or she is not a citizen, they are unable to cosign for an FHA loan.

Who is Ineligible to be a Cosigner?

There are a few different types of people who are ineligible to be a cosigner on an FHA loan. First, anyone who is not a U.S. citizen or permanent resident alien cannot cosign an FHA mortgage.

In addition, anyone who is currently delinquent on any federal debt is also ineligible. Ineligible parties who have a vested interest in the property, such as, the real estate agent or the home seller. Finally, anyone who has had a previous foreclosure or bankruptcy will also likely not be able to act as a cosigner.

Does My Co-signer Need a Good Credit Score?

If you are wondering if your cosigner needs good credit in order to help you get an FHA loan, the answer is yes. A cosigner with good credit can help you qualify for an FHA loan when you might not otherwise be able to get approved.

This is because the cosigner’s good credit history will be factored into the loan decision. When you apply for an FHA loan, the lender will pull your credit report and that of your cosigner.

If you have a cosigner with bad credit, it could hurt your chances of getting approved for the loan. This is because the lender will see that as a higher risk. However, if your cosigner has good credit, it can help offset any negative information on your own credit report and increase your chances of getting approved for the loan.

It’s important to remember that even if your cosigner has good credit, you still need to make sure that you are able to make the monthly payments on the loan. If you default on the loan, it will damage both your credit and your cosigner’s credit. So make sure that you are confident in your ability to repay the loan before you apply with a cosigner.


In conclusion, a cosigner could be the answer to your prayers when it comes to getting into your dream home. If you have a good credit score but don't have the income to qualify for a mortgage on your own, a cosigner could help you get the financing you need. Just be sure to find someone who is reliable and has a good credit score themselves.

When you are ready to buy a house, you will need to apply for a mortgage. Mortgage rates can vary, so it's important to compare rates from different lenders. To qualify for a loan, you will need to have good credit and enough income to make the monthly payments. If you have student loans, you will need to factor in your monthly student loan payments when calculating how much house you can afford.

SOURCE: Section a. Borrower Eligibility Requirements

Recommended Reading

  1. FHA Extra Payment Calculator: Make extra payments and save
  2. Easy down payment & monthly mortgage payment calculator
  3. What is Per Diem Interest on an FHA Loan?