two people on loan and one occupant?

[Jane Kim]

Could both my cousin and I be on a FHA loan while only my cousin lives in the property? I currently already have a owner occupied VA mortgage. Will this effect this also? My cousin will be starting a new job about an hour away from where I live and it seemed better to just purchase (while renting other unused rooms) than paying apartment rent but I wanted to explore ways to decrease the cash up front needed. I know as an investment property, its 20-25% down but has FHA it can be as low as 3%.

[Alexander Zurn]

@Jane Kim impeccable timing. I just answered this in another forum. See below then click link to read for yourself. It seems as if you are blood related you should be good! I would read below and click link so you are aware and then speak with your Loan Officer about this directly. Good luck!

"According to HUD 4155.1, Chapter 2 Section B, A non-occupying borrower transaction involves two or more borrowers where one or more of the borrower(s) will not occupy the property as his/her primary residence. When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV).

Borrowers should take note of some exceptions to that 75% limit which are based on family-type relationships.

Borrowers are eligible for maximum FHA loan financing for non-occupying borrower situations for FHA loan applicants who are related by blood, marriage, or law. Chapter Two describes these relationships, which include (but may not be limited to) the following:

• spouses
• parents
• children
• siblings
• stepchildren
• aunts-uncles
• nieces-nephews

...and, according to Chapter Two of HUD 4155.1, unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction."

FHA Loans and Non-Occupying Co-borrowers