Qualifying for FHA loan

[Javier Melendez]

My question is if I buy a multifamily home with a partner can we qualify for an FHA loan if only one of us lives in one of the units for a year?

[James McMurrey]

@Javier Melendez

Shoot me a message if you want to hop on a call.

Here's some FHA info on using a "non occupying co-borrower":
if you want to add a non-occupying co-borrower to your application, they must be considered a ‘family member’ by the FHA. Otherwise, you may have to make a larger down payment.

The FHA considers the following relations to be family members:

• Child, parent, or grandparent
• Step-parent or step-grandparent
• Foster parent or foster grandparent
• Spouse
• Domestic partner
• Adopted child
• Foster child
• Brother, step-brother
• Sister, step-sister
• Aunt or uncle
• Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

If the non-occupying co-borrower isn't a family member, you'll have to make a larger down payment. In general, the loan-to-value (LTV) is limited to 75% if the co-borrower is not a family member or if a family member is selling the property to another family member. For borrowers in these situations, a 25% down payment is required.

Regardless of the familial status, a non-occupying co-borrower must either be a U.S. citizen or have a principal residence in the U.S. Additionally, a co-borrower must meet certain eligibility requirements such as having a qualifying credit score, DTI, and income to move forward.

-James
Veterans Alliance- Umortgage

NMLS 2302283