May 9, 2018
Co-Signer Guidance
The news is OUT and co-signers are IN! 

Co-signers are now permitted with IFA mortgage programs!

Co-Signer Guidelines:

  • Must follow FHA, VA, RD and FNMA guidelines

  • The co-signer(s) will not have a present ownership interest in the residence.

  • IFA's lending partners must always use the most restrictive guideline for the respective loan type.  

  • First-Time home buyer status and Income for co-signer must be considered based on scenarios below:

Tips for Processing IFA Mortgage with a Co-Signer

NOTE ONLY
  • The income of any person signing the note and living in the residence should be included in determining whether the income limits are met.
  • Additional inquiry regarding whether the co-signer will be occupying the residence is required.  
  • IF the person signing the note is not taking a present ownership interest in the property, there is no FTHB requirement as to the co-signing party.
NOTE/DEED
  • The income of the co-signer would be included in determining whether the income limits are met only if the co-signer is living in the residence.
  • Additional inquiry regarding whether the co-signer will be occupying the residence is required.
  • Since the person signing the note is taking a present ownership interest in the residence, such co-signer must meet the FTHB requirement.
NOTE/MORTGAGE
  • As stated above under “Note/Deed,” the income of the co-signer would be included in determining whether the income limits are met only if the co-signer is living in the residence. 
  • Additional inquiry regarding whether the co-signer will be occupying the residence is required. 
  • Since the person signing the note is not taking a present ownership interest in the property, there is no FTHB requirement.
NOTE/MORTGAGE/DEED
  • As stated above, the income of the co-signer would be included in determining whether the income limits are met only if the co-signer is living in the residence.
  • The co-signer is taking a present ownership interest in the residence, so the FTHB requirement must be met as to such co-signer.
Please contact your IFA Program Specialist with any questions.
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