June 4, 2014
A reader asks, “I would like to know if my mother and i can get a loan together, as i will be getting a divorce and she wants to move from her current residence, so we thought we could split the payments as we would rather not rent.I work full time as an LPN and she is on social security. My age is 54 and she is 76 (very good health).”
FHA loans do permit more than one borrower. There are different situations where these borrowers are permitted including those where both applicants would occupy the home together and those where one applicant would be considered a “non-occupying co-borrower”.
In the case of this reader question, FHA loan rules require both applicants to qualify for the loan. That means both applicants will need to submit to a credit check, income verification, etc. Both borrowers would need to have sufficient FICO scores as per FHA and lender requirements.
In many cases, FHA loan minimum standards are lower than the lender’s own FICO score requirements–this is permitted under FHA loan rules.
In the specific circumstances of this reader question, it may be a good idea to contact the FHA directly to request a referral to an FHA/HUD approved housing counselor in the borrower’s local area. This can be important because the housing counselor can give advice specific to this situation.
For example, what do borrowers in this case need to do to prepare for the FHA loan? One borrower is on a fixed income, one is currently employed. What can be done to make the loan application more attractive to the lender? What can these borrowers do to prepare for the loan application process? All good things to know in advance of filling out the application.
To request such a referral, contact the FHA directly at 1-800 CALL FHA.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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