Can you have a non-occupying co-borrower on a conventional refinance?

Can you have a non-occupying co-borrower on a conventional refinance?

Fannie Mae and Freddie Mac allow non-occupant co-borrowers. When using a conventional loan, the co-signer is required to sign the loan but does not need to be on the property title.

Does FNMA allow non-occupying co-borrowers?

The non-occupant borrower income flexibility is available for all Fannie Mae loans, including HomeReady® mortgage. For more information on non-occupant borrower eligibility requirements, refer to Selling Guide section B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers.

What is the maximum LTV for a purchase transaction with a non-occupant co-borrower or non-occupant cosigner that is a family member?

Non-Occupying Co-Borrower Scenarios Limited to 75% LTV The following are limited to 75% of the purchase price or appraised value, whichever is less. So, notice the last two examples will limit family member co-signors to 75% as well.

What is the maximum LTV If you have a non-occupying co-borrower?

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.

How many co-borrowers can be on a conventional mortgage?

Most types of home loans will only allow you to add one co-borrower to your loan application, but some allow as many as three. Your co-borrower can be a spouse, parent, sibling, family member, or friend as an occupying co-borrowers or a non-occupying co-borrowers.

How do I get a co-borrower off my mortgage?

To remove your own name from a mortgage, you and your co-borrower can ask the lender for an assumption or modification that would remove your name from the loan. If the lender won’t change the existing loan, your co-borrower will need to refinance the home into a new mortgage.

What is a non-occupying co-borrower?

A non-occupying co-borrower is similar to a guarantor. They ultimately have no claim on the home – meaning they can’t take actual possession of it – but as a non-occupying co-borrower on the mortgage, they are financially responsible for paying back the loan if the primary borrower is not able to do so.

How many borrowers can be on a conventional mortgage?

According to Fannie Mae, Desktop Underwriter only supports four borrowers. If there are more than four people on the loan, the lender would have to manually underwrite the mortgage.

Does conventional allow non-occupying co-borrowers?

A non-occupying co-borrower is allowed for conventional loans as well. As with FHA, the lender will use the lesser of the borrower’s credit scores to determine approval. There are requirements a co-borrower on a conventional loan needs to meet.

Can you have 2 co-borrowers on a mortgage?

Can you take someone off a mortgage without refinancing?

You can remove a name from your mortgage without refinancing by informing your lender that you are taking over the mortgage, and you want a loan assumption. Under a loan assumption, you take full responsibility for the mortgage and remove the other person from the note.

Can one spouse refinance a mortgage?

It is not possible for one spouse to refinance a joint mortgage without the other borrower’s knowledge or consent — that would be mortgage fraud. In addition, the spouse remaining on the mortgage needs to be able to qualify for the loan on their own.

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