1) Father co-signed an FHA loan for his daughter as a non-occupant co-borrower. Father now wants an FHA Reverse Mortgage on his primary home. He has 12 months proof she is paying the mortgage. Can Father enter into another FHA loan? If so, do we need to provide 12 or 24 months proof daughter pays the mortgage to consider this a contingent liability? 2) If Father can do an FHA loan on his primary, do we have to count daughter’s mortgage in his FA? 3) Father’s wife is 58 and will be a NBS. If we take her off title to close the loan, can we count her income in the FA?
The father can get his own FHA as long as he can provide the evidence that the daughter has made the most recent 12 months payment from her own account and on time. We do not need to count the daughter’s mortgage in his FA as long as it has been paid on time. The NBS’s income can be used or it can be provided to show that she is self-sustaining and the residual can be dropped to just the borrower.