Real Estate Agent · Napa California · Member since 2020 · 23 posts · 8 votes
Hey everybody,
I am trying to strategize with my friend and partner about purchasing our first property. Do any of you know if there can be two buyers listed on an FHA loan, each of us being in different states, do we both have to occupy the property or can just one of us live in it to satisfy the OO contingency?
At least one of you must occupy the property. The other can be a non-occupant coborrower (meaning they can live in a different state). However, in order to get the benefit of the low down payment, the non-occupant coborrower must be a blood relative. If it is just a friend that is not a blood relative, the down payment jumps up to 25%. At that point, you may as well do a conventional loan and avoid the PMI.
At least one of you must occupy the property. The other can be a non-occupant coborrower (meaning they can live in a different state). However, in order to get the benefit of the low down payment, the non-occupant coborrower must be a blood relative. If it is just a friend that is not a blood relative, the down payment jumps up to 25%. At that point, you may as well do a conventional loan and avoid the PMI.