Co-Sign and FHA Home Loan?

With an FHA loan, you would be considered a non-occupant co-borrower (NOCB) and yes, it would go on your credit. If you did not want ownership of the home you could always quit claim deed it to your sister, but that would not relieve you of the mortgage obligation. This would report on your credit and you would be liable for the payments. The bigger issue however, is if you could even be a co-borrower at all having 2 current FHA mortgages. I have seen circumstances where FHA allows a 2nd mortgage, there are special circumstances that address this, but I have never seen anyone get 3, much less the 3rd as a NOCB. Contact me to discuss your situation more and I can find the best solution for your sister. Gregorio Denny - 800-335-6897 - WeFixRates.Com

Hi Mark, You will not be able to co-sign for her on another FHA loan since you already have FHA loans. You could however, co-sign for her on a conventional loan. The bank would calculate your debt-to-income ratio by adding in the mortgages you already have with her debt and both of your monthly income to get a combined DTI ratio.