What we verified in “Buying a home with family: co-borrowers and co-signers”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. For Fannie Mae, a borrower is any applicant, individually or jointly, whose credit is used to qualify; 'co-borrower' means any borrower other than the one whose name appears first on the note; and to have an ownership interest and be liable for the debt, a borrower signs the security instrument (the mortgage or deed of trust), signs the note and takes title in their own name.

   Sources 1 · Selling Guide B2-2-01, General Borrower Eligibility Requirements (09/03/2025), 'General Borrower Identity Criteria': 'A borrower is any applicant (e.g., individually or jointly) whose credit is used for qualifying purposes'; 'is a term used to describe any borrower other than the borrower whose name appears first on the note'; 'Establishing Borrower Ownership Interest': 'signing the security instrument, signing the mortgage or deed of trust note, and taking title to the property in the name of the individual borrower(s)' · Checked October 17, 2026

2. For Fannie Mae, guarantors and co-signers are applicants with no ownership interest in the home as shown on the title who sign the note and share liability for it with the borrower; non-occupant borrowers are applicants on a principal residence purchase who will not live there, may or may not have an ownership interest on the title, sign the note and share liability; none may have an interest in the sale, like the seller, builder or real estate agent; and they are allowed on purchases and refinances.

   Sources 3 · Selling Guide B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction (09/02/2020), 'Definitions': 'Guarantors and co-signers are credit applicants who do not have ownership interest in the subject property as indicated on the title'; 'sign the mortgage or deed of trust note'; 'have joint liability for the note with the borrower'; 'Non-occupant borrowers are credit applicants on a principal residence transaction who do not occupy the subject property'; 'may or may not have an ownership interest in the subject property as indicated on the title'; 'such as the property seller, the builder, or the real estate agent'; 'are permitted on purchase, limited cash-out and cash-out refinance transactions' · Checked October 17, 2026

3. For Fannie Mae, on a manually underwritten loan that uses the income of a guarantor, co-signer or non-occupant borrower, the borrowers who will live in the home must make the first 5% of the down payment from their own funds, unless the loan-to-value ratio is 80% or less or they are buying a one-unit principal residence and meet the rules for using gifts or other help; their debt-to-income ratio, using only the occupants' income, may not exceed 43%; and the loan-to-value ratio may not exceed 90%.

   Sources 3 · B2-2-04, 'Down Payment and Qualifying Ratio Requirements for Manually Underwritten Loans': 'the occupying borrower(s) must make the first 5% of the down payment from their own funds unless'; 'the LTV or CLTV ratio is less than or equal to 80%'; 'the occupying borrower is purchasing a one-unit principal residence and meets the requirements to use gifts'; 'Using only the income of the occupying borrower(s) to calculate the DTI ratio, the maximum allowable DTI ratio is 43%'; 'LTV Ratio Requirements for Manually Underwritten Loans': 'may not exceed 90%' · Checked October 17, 2026

4. For Fannie Mae, when the loan is underwritten with its automated system (Desktop Underwriter, DU), the income, assets, debts and credit of every borrower are considered whether or not they will live in the home; and with a guarantor, co-signer or co-borrower who will not live there, the loan-to-value ratio may not exceed 95%.

   Sources 3 · B2-2-04, 'LTV Ratio Requirements for Loan Casefiles Underwritten through DU': 'Regardless of whether an individual borrower will be occupying the property as their principal residence, DU will consider the income, assets, liabilities, and credit of that borrower'; 'For DU loan casefiles with a guarantor, co-signer, or co-borrower who will not occupy the subject property, the maximum LTV, CLTV, and HCLTV ratio may not exceed 95%' · Checked October 17, 2026

5. For Fannie Mae, a non-occupant borrower's income may count toward qualifying if it meets the same standards as the occupants' income; on a manually underwritten loan it can offset weaknesses such as limited income, reserves or credit history, but not significant or recent major credit problems; and the occupant must still show willingness to make the payments.

   Sources 4 · Selling Guide B3-3.1-01, General Income Information (10/07/2026), 'Non-Occupant Borrower Income': 'Income from a non-occupant borrower may be considered in qualifying'; 'provided the income meets the same standards as required for occupying borrowers'; 'this income can offset certain weaknesses that may be in the occupant borrower's loan application, such as limited income, financial reserves, or limited credit history'; 'it may not be used to offset significant or recent instances of major derogatory credit'; 'The occupant borrower must still reasonably demonstrate a willingness to make the mortgage payments' · Checked October 17, 2026

6. For Fannie Mae, the debt-to-income ratio compares monthly debts with the total monthly income of all borrowers, to the extent that income is used to qualify; and with a non-occupant borrower, debts include that person's mortgage or rent payment where they live.

   Sources 5 · Selling Guide B3-6-02, Debt-to-Income Ratios, 'DTI Ratios': 'total monthly income of all borrowers, to the extent the income is used to qualify for the mortgage'; 'Calculating Total Monthly Obligation': 'the housing payment for each borrower's principal residence'; 'if there is a non-occupant borrower, use the mortgage payment (including HOA fees and subordinate lien payments) or rental payments' · Checked October 17, 2026

7. For Fannie Mae, if you are obligated on a non-mortgage debt (for example, because you co-signed a relative's loan) but someone else actually pays it, the lender may leave that payment out of your debts if it gets the most recent 12 months of canceled checks or bank statements from the person paying, with no late payments.

   Sources 6 · Selling Guide B3-6-05, Monthly Debt Obligations (08/05/2026), 'Debts Paid by Others': 'When a borrower is obligated on a non-mortgage debt - but is not the party who is actually repaying the debt'; 'the lender may exclude the monthly payment from the borrower's recurring monthly obligations'; 'the most recent 12 months' canceled checks (or bank statements) from the other party making the payments'; 'with no delinquent payments' · Checked October 17, 2026

8. Fannie Mae's HomeReady loan allows non-occupant borrowers; and rent paid to you by one or more people who live with you (related or not) can count as stable income on a one-unit home, up to 30% of your qualifying income, if that person is not on the loan or the title, has lived with you for the last 12 months, can show you share an address, and can show rent paid to you for the last 12 months, or at least 9 of the most recent 12, not paid directly to someone else.

   Sources 7 · Selling Guide B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements (11/05/2025): 'Non-occupant borrowers are permitted on HomeReady mortgages'; 'Boarder Income': 'The rental payments that any borrower receives from one or more individuals who reside with the borrower (who may or may not be related to the borrower) may be considered as acceptable stable income'; 'up to 30% of the total gross income that is used to qualify the borrower'; 'the boarder is not obligated on the mortgage loan and does not have an ownership interest in the property'; 'has lived with the borrower for the last 12 months'; 'a history of shared residency'; 'at least 9 of the most recent 12 months'; 'Payment of rent by the boarder directly to a third party is not acceptable' · Checked October 17, 2026

9. For Fannie Mae, to check HomeReady's income limits the lender counts the income of every borrower who will sign the note, to the extent it is used to qualify, and that yearly income may not exceed 80% of the area median income (AMI) where the home is.

   Sources 8 · Selling Guide B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility (06/04/2025), 'Borrower Income Limits and Calculations': 'the lender must count the income from all borrowers who will sign the note'; 'the total annual qualifying income may not exceed 80% of the AMI for the property's location' · Checked October 17, 2026

10. On an FHA loan, all borrowers and co-borrowers, whether or not they live in the home, must take title in their own name or a living trust at closing, be obligated on the note and sign the security instruments; co-signers are liable for the debt and therefore sign the note, but hold no ownership interest and do not sign the security instrument; and in community property states your spouse does not have to be a borrower or co-signer, although the mortgage must be signed by whoever state law requires for the lien to be valid.

    Sources 9 · HUD Handbook 4000.1 (last revised 8/12/2026), II.A.1.b.ii(A)(4), Borrower and Co-Borrower Ownership and Obligation Requirements: 'all occupying and non-occupying Borrowers and co-Borrowers must take title to the Property in their own name or a living trust at settlement, be obligated on the Note or credit instrument, and sign all security instruments'; 'In community property states, the Borrower's spouse is not required to be a Borrower or a Co-signer'; 'the Mortgage must be executed by all parties necessary to make the lien valid and enforceable under state law'; (5) Co-signer Requirements: 'Co-signers are liable for the debt and therefore, must sign the Note'; 'Co-signers do not hold an ownership interest in the subject Property and therefore, do not sign the security instrument' · Checked October 17, 2026

11. On an FHA loan, co-borrowers or co-signers who will not live in the home must be US citizens or have their principal residence in the US; when one or more borrowers will not occupy the home, the maximum loan-to-value ratio is 75 percent, but it can go up to 96.5 percent if the borrowers are family members, unless a family member is selling to a family member who will be a non-occupying co-borrower or the home has two to four units.

    Sources 9 · II.A.1.b.ii(A)(6), Principal Residence in the United States: 'Non-occupying co-Borrowers or Co-signers must either be United States (U.S.) citizens or have a Principal Residence in the U.S.'; II.A.2.b.ii(B), LTV Limitations Based on Non-Occupying Borrower Status: 'one or more of the Borrower(s) will not occupy the Property as their Principal Residence'; 'the maximum LTV is 75 percent'; 'The LTV can be increased to a maximum of 96.5 percent if the Borrowers are Family Members'; 'a Family Member selling to a Family Member who will be a non- occupying co-Borrower'; 'a transaction on a two- to four-unit Property' · Checked October 17, 2026

12. For FHA, a family member is, regardless of sex or legal marital status: a child, parent or grandparent (including step and foster); a spouse or domestic partner; a legally adopted child or a foster child; a brother or stepbrother, a sister or stepsister; an uncle or aunt; or an in-law; and someone with a financial interest in the sale, such as the seller or agent, may not be a co-borrower or co-signer, though exceptions may be granted for a family member.

    Sources 9 · II.A.1.a.i(E)(1), Sales Contract, definition of Family Member: 'Family Member is defined as follows, regardless of sex or legal marital status'; 'child, parent, or grandparent'; 'spouse or domestic partner'; 'legally adopted son or daughter'; 'foster child'; 'brother, stepbrother'; 'sister, stepsister'; 'uncle, aunt'; 'son-in-law, daughter-in-law, father-in-law, mother-in-law'; II.A.1.b.ii(A), General Borrower Eligibility Requirements: 'A party who has a financial interest in the mortgage transaction, such as the seller, builder or real estate agent, may not be a co-Borrower or a Co-signer'; 'Exceptions may be granted when the party with the financial interest is a Family Member' · Checked October 17, 2026

13. On an FHA loan, each borrower must provide evidence of a valid Social Security number (with exceptions for certain employers, such as the World Bank or a foreign embassy), and the lender must validate the Social Security number of each borrower, co-borrower or co-signer.

    Sources 9 · II.A.1.b.ii(A)(1), Social Security Number: 'Each Borrower must provide evidence of their valid SSN to the Mortgagee'; 'Individuals employed by the World Bank, a foreign embassy or equivalent employer identified by HUD'; 'validate and document an SSN for each Borrower, co-Borrower, or Co-signer on the Mortgage' · Checked October 17, 2026

14. On an FHA loan, US citizenship is not required; the lender determines each borrower's residency status from the application and other documents, and a Social Security card is not enough to prove immigration or work status; lawful permanent residents are eligible on the same terms as citizens, as are citizens of the Federated States of Micronesia, the Marshall Islands and Palau.

    Sources 9 · II.A.1.b.ii(A)(8), Citizenship and Immigration Status: 'U.S. citizenship is not required for Mortgage eligibility'; (9) Residency Requirements: 'The Mortgagee must determine the residency status of the Borrower based on information provided on the mortgage application and other applicable documentation'; 'A Social Security card is not sufficient to prove immigration or work status'; 'A Borrower with lawful permanent resident status may be eligible for FHA-insured financing provided the Borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens'; 'the Republic of the Marshall Islands, or the Republic of Palau' · Checked October 17, 2026

15. The Fannie Mae Selling Guide requires each borrower to have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting legal residency and documentation requirements.

    Sources 1 · Selling Guide B2-2-01, 'Tax Identification Numbers': 'requires that each borrower have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting existing legal residency and documentation requirements' · Checked October 17, 2026

16. Fannie Mae buys mortgages from borrowers who are not US citizens but are lawful permanent or non-permanent residents, on the same terms as citizens; it does not set the exact documentation: the lender decides status case by case and warrants to Fannie Mae that the borrower is legally present.

    Sources 2 · Selling Guide B2-2-02, Non-U.S. Citizen Borrower Eligibility Requirements: 'lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens'; 'does not specify the precise documentation the lender must obtain'; 'based on the circumstances of the individual case, using documentation it deems appropriate'; 'the lender represents and warrants that the non-U.S. citizen borrower is legally present in this country' · Checked October 17, 2026

17. According to the CFPB, a lender generally cannot require your spouse's (or another person's) signature for individual credit if you qualify on your own for the amount and terms requested; if you apply for joint credit, it may require the signature of the person you apply with; and on a mortgage it may require your spouse or another person to sign if state law requires it to secure the home as collateral, for example to create a valid lien or clear title.

    Sources 10 · Does my spouse have to co-sign my mortgage loan? (last modified Dec. 18, 2024): 'a creditor such as a lender cannot require your spouse's (or another person's) signature for individual credit if you qualify on your own for the amount and terms requested'; 'if you are applying for joint credit, a lender may require your spouse's signature (or the signature of the person with whom you are applying)'; 'if it's required by state law to secure your property as collateral'; 'documents to create a valid lien or clear title' · Checked October 17, 2026

18. According to the CFPB, your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income; it is one way lenders measure your ability to pay, and different products and lenders have different limits.

    Sources 11 · What is a debt-to-income ratio? (last reviewed Aug. 28, 2023): 'all your monthly debt payments divided by your gross monthly income'; 'one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow'; 'Different loan products and lenders will have different DTI limits.' · Checked October 17, 2026

19. According to the Justice Department's Executive Office for Immigration Review (EOIR), only certain people can represent you, including validly licensed attorneys and accredited representatives; notarios, document preparers, immigration consultants and travel agents are not allowed to practice law or give you legal advice.

    Sources 12 · Can Someone Represent You Before EOIR?: 'Those include validly licensed attorneys and accredited representatives'; 'Notarios, document preparers, immigration consultants, and travel agents are not allowed to practice law'; 'They cannot give you legal advice' · Checked October 17, 2026

20. HUD-approved housing counselors give independent advice on buying a home, renting, defaults and credit, and on whether a set of loan terms fits your goals, often at little or no cost.

    Sources 13 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances'; 'often at little or no cost to you' · Checked October 17, 2026