FHA, Fannie Mae & Freddie Mac Non-Occupying Co-Borrower Rules

If you have been looking to buy your first home, but your finances make this seem impossible, there could still be an option. If you have a family member who is willing to co-sign on a mortgage, you could buy a home sooner than you might have expected.

A non-occupying co-borrower arrangement allows the borrower and their parent or another family member to be approved for a home loan together. This can make student loan debt, a high debt-to-income ratio, or a bad credit history less of a problem. If the relative has a low debt-to-income ratio and a solid financial history, buying a home suddenly becomes possible.

We take a look at the things you need to know about being eligible for a non-occupying co-borrower mortgage.