A parent, sibling, or family member can help you qualify for a mortgage without living in the home — FHA allows it, with specific LTV limits depending on the relationship.
A family (or family-like) non-occupying co-borrower keeps you at FHA's standard 3.5% down payment.
A non-family co-borrower caps financing at 75% LTV — a 25% down payment.
Income and liabilities of both borrowers are combined into one qualifying DTI.
Manually underwritten files with a non-occupying co-borrower need 3 months PITI in reserves.
A parent or family member co-signs so your income and credit combine to qualify.
You're occupying the home; a relative is on the loan but living elsewhere.
Common structure for a young buyer with a shorter income history.
These are the FHA (HUD 4000.1) rules I underwrite to. Conventional, VA, USDA, and Non-QM treat some of these situations differently — see below.
| Scenario | Requirement |
|---|---|
| Family non-occupying co-borrower | Max financing at 96.5% LTV (3.5% down) — same as a standard FHA loan |
| Non-family non-occupying co-borrower | Max LTV capped at 75% (25% down payment required) |
| DTI treatment | Income and liabilities of both the occupying borrower and co-borrower are fully blended |
| Reserves — manual underwrite | 3 months of PITI reserves required post-closing |
Non-QM investors aren't standardized by Fannie, Freddie, or FHA, so guidelines vary — here's the general shape I see most often.
| Scenario | Typical Non-QM rule |
|---|---|
| Default policy | Many Non-QM investors do not allow non-occupying co-borrowers to help qualify on primary residences |
| If allowed | Credit scores are blended, and the occupying borrower must generally meet a minimum DTI threshold on their own before the co-borrower's income is added |
VA strictly prohibits non-occupying co-borrowers — a spouse can satisfy occupancy if the veteran is deployed.
| Scenario | VA rule |
|---|---|
| Standard non-occupying co-borrower | Not allowed — all borrowers must intend to occupy within ~60 days of closing |
| Deployed veteran | Spouse can satisfy the occupancy requirement in the veteran's place |
| Veteran + non-veteran, non-spouse co-borrower | Triggers a VA Joint Loan: manual underwrite, 12.5% down payment, and VA regional office approval |
Conventional is the most permissive here — a family co-signer with as little as 5% down.
| Requirement | Conventional rule |
|---|---|
| Allowed | Yes — a family member (e.g. a parent) can co-sign without occupying the home |
| DTI treatment | Income and debts blended between both borrowers |
| Down payment | As little as 5% down, even with a non-occupying co-borrower on the loan |
USDA is as strict as VA here — no exceptions for non-occupying co-borrowers.
| Scenario | USDA rule |
|---|---|
| Non-occupying co-borrowers | Strictly prohibited — every borrower on the loan must occupy the home as their primary residence within 60 days of closing |
SONYMA is absolute here — no exceptions of any kind.
| Scenario | SONYMA rule |
|---|---|
| Non-occupying co-borrowers | Strictly prohibited under all circumstances — every signer on the note must occupy the home within 60 days of closing |
Standard Jumbo is a hard no here — this scenario routes straight to a Non-QM portfolio product.
| Scenario | Jumbo rule |
|---|---|
| Standard Jumbo | Generally ineligible — most investors require every borrower to occupy the property as their primary residence |
| Workaround | Route to a Non-QM portfolio product instead of a standard prime Jumbo |
Land loans are structured around individual purchases — no co-borrower workaround exists.
| Scenario | Land Loan rule |
|---|---|
| Non-occupying co-borrowers | Strictly ineligible — the program is structured around individual, non-speculative land purchases |
Licensed across New York State — with deep roots in the Capital Region and select NYC neighborhoods.
Don't see your town? Reach out — I lend statewide. Or see every Capital Region town.