When it comes to getting co-signers to buy a home using FHA, I see a lot of hesitation from parents and grandparents. I have been able to get them to do this so they know that their child/grandchild can “assume” them off of the mortgage when they have paid off enough debt or increased their income enough to qualify on their own. The benefit to this is as follows:
- They get to take advantage of the current market.
- They get to take advantage of the current interest rates. When they assume the loan the interest rate does NOT change for them so they will remain locked in at today’s awesome rates.
- A lot of people believe that you have to refinance the co-signer off and in turn then risk higher rates down the road… This is not true.
With the Holidays coming up and family’s are gathering together, now’s the perfect time to look into this!
Mortgage Consultant, Prime Lending