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Can I be a co-borrower/ co-signer on a second FHA mortgage on a multi-family home?

i have my own home in elizabeth, nj and my brother would like for me to co-sign on a multi-family home he would like to purchase for the family. Do I qualify to be his co-signer? My credit is good and my mortgage is in good standing. I just purchased my house less than a year ago.
  • January 10 2011 - Crown Heights
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Answers (4)

d. LTV for Two to Four Unit Properties

To reduce risk exposure, mortgages with non-occupying borrowers are limited to one-unit properties if the LTV exceeds 75 percent. The non-occupying borrower arrangement to assist in financing a property may not be used to develop a portfolio of rental properties. The financial contribution by the non-occupying borrower and the number of properties owned may indicate that the family members are acting as "strawbuyers."

  • January 12 2011
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As long as you are a non-occupant com borrower  and this is his Primary home you should be fine.
However it is risky being a co-signer, if he defaults, they will want you to pick up the mortgage.
Think it over.
  • January 12 2011
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Profile picture for wetdawgs
In order to qualify to be a co-signer, your income must be high enough to be able to support both mortgages without any payments from your brother.  

Your brother most likely needs a co-signer because his income isn't high enough.   Being a co-signer is extremely risky - if he defaults, you are responsible.  In addition, his mortgage will show up on your credit report.   Are you really ready for this financial responsibility?  It isn't trivial, and many people regret agreeing to be a co-signer.

  • January 11 2011
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Assuming this purchase for your brother is going to be his primary residence. Yes a non-occupant co-borrower can have an existing FHA mortgage. From

http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.4.B.2.d

A borrower may be qualified for an FHA-insured mortgage on his/her own principal residence even if he/she is a non-occupying coborrower with a joint interest in a property being purchased by other family members as a principal residence with an FHA-insured mortgage
  • January 10 2011
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