Get a Home Loan with a Co-Signor

If you are having trouble getting a home loan qualified, maybe it is time to consider a different option. Maybe it is time to Get a Home Loan with a Co-Signor. Getting qualified with a Co-Signor may be the answer to your getting a new Santa Clarita mortgage. The additional borrower will be completely responsible for the loan along with you but the additional income may get you an approval.

Debt to Income for any Santa Clarita mortgage qualification will be both the main Borrower and the Co-Signor’s debt added together compared to both incomes. The ratio of debt to income or DTI should not exceed about 43% for a Santa Clarita conventional home loan or 50% DTI for a FHA home loan Santa Clarita.

Apply for A Santa Clarita Home Loan

Sit down with your Santa Clarita Mortgage Lender and determine exactly what your DTI is. Don’t use last week’s paystub for income. Home Loan Approval will use the average of the last 2 years tax return income for the income qualification. The Lender will review your mortgage application and use other data to determine your approval. When you apply for a home loan, it is important to list everything correctly. If you are unsure about something, ask your Mortgage Lender for assistance. The Lender will pull a credit report to determine your debt payments.

Co-Signor is a Co-Borrower

The additional Borrower on the loan will help you qualify. Many times, the funds you need for the Santa Clarita Mortgage Down Payment plus paying the Closing Cost do not allow funds for paying down debt to qualify. In this case getting a relative or friend to be a Co-Borrower may be the answer. The additional borrower will need to have Income left over after calculating their DTI to apply to your qualification ratios.

FHA Mortgages

A Santa Clarita FHA mortgage will be another option for you. This allows DTI to be approved at higher ratios and many lenders can go as high as 50% DTI and issue a new home loan approval. FHA loans do have a higher cost but usually offer a lower interest rate. FHA charges an upfront origination fee as well as a monthly mortgage insurance amount added to your payment. It may be your best option if you are tight on DTI.

One option is to just pay off one or more debts to allow your DTI to qualify. Previously, if you paid off a credit card you had to close the account. New regulations allow you to pay it off or down to get a lower monthly payment and keep the account open.

When qualifying for a Santa Clarita home loan, the most important part is to check with several lenders to see what DTI ratio’s they allow. Many will have different programs. A Co- Signor for Mortgage Approval is a great way to buy the home of your dreams and get qualified for a Santa Clarita Mortgage. Remember, the co-borrower is on the loan with you and fully responsible for it with you. It will show on their credit. Many people just use the Real Estate Agents preferred lender that can be a good thing or a bad one. Shop around and speak to several lenders with mortgage experience before choosing.