Iowa Finance Authority Co-Signer Guidance

May 9, 2018

Co-Signer Guidance

The news is OUT and co-signers are IN!

Co-signers are now permitted with IFA mortgage programs!

Co-Signer Guidelines:

IFA's lending partners must always use the most restrictive guideline for the respective loan type.

First-Time home buyer status and Income for co-signer must be considered based on scenarios below:

Tips for Processing IFA Mortgage with a Co-Signer

NOTE ONLY

The income of any person signing the note and living in the residence should be included in determining whether the income limits are met.
Additional inquiry regarding whether the co-signer will be occupying the residence is required.
IF the person signing the note is not taking a present ownership interest in the property, there is no FTHB requirement as to the co-signing party.

NOTE/DEED

The income of the co-signer would be included in determining whether the income limits are met only if the co-signer is living in the residence.
Additional inquiry regarding whether the co-signer will be occupying the residence is required.
Since the person signing the note is taking a present ownership interest in the residence, such co-signer must meet the FTHB requirement.

NOTE/MORTGAGE

As stated above under “Note/Deed,” the income of the co-signer would be included in determining whether the income limits are met only if the co-signer is living in the residence.
Additional inquiry regarding whether the co-signer will be occupying the residence is required.
Since the person signing the note is not taking a present ownership interest in the property, there is no FTHB requirement.

NOTE/MORTGAGE/DEED

As stated above, the income of the co-signer would be included in determining whether the income limits are met only if the co-signer is living in the residence.
The co-signer is taking a present ownership interest in the residence, so the FTHB requirement must be met as to such co-signer.

Please contact your IFA Program Specialist with any questions.