Mortgage CoSign Question

[Noah Stout]

Novice Here:

Im curious if its possible or wise to have my brother cosign a FHA mortgage with me?
The property would be a duplex that I House hack, ideally using a FHA loan. I am only asking bc my w2 income is not sufficient enough to get a loan on the type of property we want. Is there anyway to take him off the loan after a year so he doesn't have the added DTI?

Down the road we plan on owning several more rentals together in a LLC.

Any thoughts/insight/advice is greatly appreciated!

[Alex Nigh]

Hey Noah I went through a similar dilemma last year with my sister. I was not able to qualify for the loan on my own and debated having her cosign with me. We decided to have just her name on the loan but put both of ours on the title, this allowed me to go off and potentially get another house without waiting the year (technically 10 months with 60 day move in period) for owner occupied loans. I can not speak as to how to get him off the loan, but if he can qualify on his own I would just throw your name on title. That being said he would have to occupy the house hack as well if he was the only one on the loan, some lenders require the cosigner to be in the same state if you went that route. 

I would also look into homeready loans or the bank of america grant program, they might be better than the FHA route.

https://singlefamily.fanniemae...

https://www.bankofamerica.com/...

Not sure if that helps at all, happy house hacking!