Lender Guidelines: 5.2 Cosigners and Non-Occupant Co-Borrowers
Lender Guidelines: 5.2 Cosigners and Non-Occupant Co-Borrowers
Only cosigners or non-occupying co-borrowers who DO NOT sign the deed of trust and will not take any ownership interest in the property are eligible for use. Cosigners or non-occupying co-borrowers that WILL have ownership interest are not eligible for use under any circumstance.
Cosigners or non-occupying co-borrowers (who DO NOT sign the deed of trust) are permitted on government loan types only; they are not permitted on conventional loans. Please follow agency guidelines. In addition, they must meet the following conditions:
• Must not take any ownership interest in the property being financed with the mortgage loan, must not be on the title and must not sign the deed of trust.
• Must not occupy the property being financed with the mortgage loan and should not execute any of the program documents or affidavits.
• The cosigner’s or non-occupying co-borrower’s income should not be considered when calculating the income for comparison against the maximum family income limits established for the program.
For access to the full TSAHC DPA & MCC Guidelines, please click here.