Can co-signors help the borrower qualify for a bond loan?
To answer your question, let’s take a look at the difference between co-signers and co-borrowers. A simple rule of thumb is: whomever takes title must sign affidavits, provide tax returns, and their income must be included in the bond qualifying income. A co-signer’s income is used to help qualify the borrower for the loan, but it is not included in the bond compliance review and a co-signer does not have to be a first-time homebuyer. Only a co-signer’s 1003 is required in the compliance file. The co-signor signs the Note, but not the Mortgage. These guidelines are consistent with all bond programs however, there are differing regulations about whose income in the household is considered in the compliance review, so consult your manual for further clarification.
Related Questions
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