Cosigner for FHA Loan Requirements

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

Woman holding a cosigner folderYour neighbor tells you about a fantastic home 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?

One of the advantages of an FHA loan is the flexible co-signer requirements. The FHA will allow a non-occupant co-signer to be on the mortgage note if they satisfy the HUD borrower eligibility criteria.

Adding a co-signer may help a home buyer qualify for an FHA-insured loan 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.

Lenders are concerned about the borrower's credit score. In the loan analysis, the lender will always utilize the credit ratings 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 score or below-average credit.

A co-signer should have a consistent source of income and a two-year employment history. The co-signer must satisfy the same minimal requirements as anybody applying for an FHA loan.

Who Can Cosign on a FHA Loan?

If you apply for an FHA loan with a co-signer, HUD's borrower rules allow the family to participate as a co-signer.

Among these relatives are the following:

  • 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.

FHA Cosigner Requirements

Many of the same criteria apply to co-signers as they do to the main borrower of an FHA loan. It's as if they're applying for a mortgage on their own. Co-signers must be willing to fulfill the following requirements:

  • work experience of two years with a consistent income
  • income and assets must be documented.
  • W2s and tax returns must be provided.
  • Co-signers must satisfy the FHA's minimal credit requirements.
  • A US citizen with a social security number is required.
  • And all mortgage papers must be signed.

Difference Between Co Signer and Co Borrower

The distinction between a non-occupying co-borrower and a co-signer is that the non-occupying co-borrower owns the property, while the co-signer does not. In both cases, the co-signer and non-occupying co-borrower sign the mortgage and are liable for its payments.

Borrowers and co-borrowers who acquire title to the property at settlement, whether occupied or non-occupied, are obliged to pay the mortgage note and must sign any security documents.

Rotating question markFrequently Asked Questions (FAQs)

Q. Can a Non Occupying Co Borrower Have 2 FHA Loans
A. Yes, a non-occupying co-borrower can have two FHA loans. The non-occupying co-borrower must meet the eligibility requirements for FHA loans, including being able to demonstrate creditworthiness and having an acceptable debt-to-income ratio. Additionally, the non-occupying co-borrower must be listed on the mortgage note and be responsible for the repayment of the loan.

Q. Can a parent cosign on a FHA loan?
A. Yes, a parent can cosign on a FHA loan. This will help the child get approved for the loan and may help them get a lower interest rate. The parent is responsible for the loan if the child defaults, so it's important to make sure the child can afford the payments.

Read more questions and answers about FHA loans


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 loan 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.