Someone In Your Corner, On Paper.
A parent or family member can go on the loan with you without living in the home.*
Their income. Your front door.
A co borrower who does not live in the home can still stand behind the loan, and being family changes the terms.
- The co borrower does not have to live in the home
- You occupy the property as your principal residence
- Family members receive better treatment than a non relative*
- Available on a purchase, not on a cash out refinance*
- One to four units and FHA approved condominiums
- Both credit files and both incomes are reviewed
Financing with a non occupying co borrower*
The co borrower does not have to live in the home
You have to occupy the property as your principal residence
Family members get better treatment than a non relative*
Available on a purchase, not on a cash out refinance*
Their income and credit are reviewed alongside yours
What is the Saxton Co-Borrower Home Loan?
A purchase with a family member on the loan who lives somewhere else
The Saxton Co-Borrower Home Loan is a purchase where two or more people are on the loan and at least one of them will not live in the home. FHA calls this a non occupying borrower transaction, and it is how most people help a family member buy a first house.
Two things decide this one: whether the co borrower is a family member, and what kind of property you are buying. Family relationships ease the requirements considerably, and a two to four unit property follows a different set of rules.
The relationship matters. When the co borrower is a family member the terms are noticeably better than when they are not. There are limits, though: it does not apply to a cash out refinance, and it works differently on a two to four unit property.*
Why choose the Saxton Co-Borrower Home Loan?
Built for buyers whose own file is thin, and for the family who want to help without buying a house.
A Parent Helping
The most common version of this. A parent goes on the loan so a first home is possible now rather than in five years.
Family Terms Are Better
When the co borrower is a family member the requirements ease considerably compared with a non relative.*
You Still Own It
You live in the home and you are on the title. The co borrower is standing behind the loan, not moving in.
Thin Credit Files
A short credit history or a young income record is easier to work with when someone established is on the loan with you.
Purchases Only
A non occupying co borrower may not be added for qualifying on a cash out refinance.*
Two To Four Units
The rules work differently when the property has more than one unit. Ask before you assume it carries over.*
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about putting a family member on the loan.
Anyone who is on the loan but will not occupy the property as their principal residence. In practice it is almost always a parent, a sibling or another close relative.
It does not have to be, but it makes a real difference. When the co borrower is a family member the requirements ease considerably compared with a non relative.*
That is a separate decision from the loan and it is worth talking through, because being on the loan and being on the title are not the same thing. A licensed loan officer can walk you through both.
Not on a cash out refinance. A non occupying co borrower may not be added for qualifying purposes on that transaction. It is a purchase feature.*
The rules change on a two to four unit property, so do not assume the purchase terms carry across. Ask before you make an offer.*
Both. The income and credit of everyone on the loan are reviewed together, which is the point of adding someone.
Removing a borrower means refinancing into a new loan in the remaining names, and that has to stand on its own qualifying. It is a normal thing to plan for, just not automatic.
Find out what you qualify for
If a parent or family member is ready to help you buy without moving in, there is likely a Saxton Co-Borrower Home Loan that fits. Get a fast, no obligation pre-qualification today.
Get Pre-Qualified- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
- Consumer Financial Protection Bureau, mortgages
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Non occupying co borrower transactions are governed by the guidelines of the program used, including relationship, occupancy and property type requirements. This feature is not available on cash out refinance transactions. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.