< Back to JVM's Blog

Non-Occupant Co-Borrowers; As Is – Reminder (Do NOT ref. Reports)

A Couple Reminders:

As Is Purchase Contracts should have NO references to ANY reports of any kind. We continue to get “as is” deals that reference reports somewhere in the contract, and invariably, the lender requests the report and we have to get work done prior to close.

Non-Occupant Co-Borrowers (parent co-signing for a child, for example) are allowed not only for FHA Loans, but also for Freddie Mac Conforming Loans with 20% down. We often take advantage of the non-occupant co-borrowers provision these days for borrowers who are currently upside down in their current home, but wish to buy another home.

Such borrowers cannot afford to sell their current residence and they cannot use the rent from their current residence to help qualify for a new home b/c they lack the required “30% Equity Cushion”. Rent, for income, can only be employed from a departing residence if there is a 30% Equity Cushion.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167