Do late payments affect the cosigner on an FHA loan?

Yes. If the borrower misses a payment, the late payment will appear on the cosigner’s credit report and impact their credit score .

What happens to the cosigner on the FHA loan of the loan defaults?

If the borrower defaults on the loan , the cosigner is legally obligated to take on the mortgage payments until the borrower resumes making payments themselves.

Can you have a non occupying coborrower on an FHA loan?

Yes. The FHA allows for non occupying coborrowers — that is, borrowers who make mortgage payments but don’t live on-site. Often this can help an occupying borrower (those who live in the house) qualify for an FHA loan, as the additional income helps them pay for the monthly mortgage.

What credit score do I need to get an FHA loan?

Along with other requirements , you need a minimum credit score of 580 to qualify for an FHA loan. The FHA does allow for credit scores between 500 and 580, but only if you have a 10% down payment.

Can first-time home buyers have a cosigner?

Yes, first-time home buyers can have cosigners for FHA loans. Learn why you might need a cosigner .

Lydia Kibet

Writer

Lydia is a writer with a knack for personal finance and all things money. She's passionate about explaining complex topics in easy-to-understand language. Lydia has covered a variety of finance topics, including investing, insurance, banking, credit cards, mortgages, real estate, loans, saving, and retirement.

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