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Redfox Helps You Purchase or Refinance with the Most Dedicated Professional

Non-Occupant Co-Borrowers
- Buying a house for your college age kids or new graduates

A NOCB(Non-Occupying Co-Borrower) is a person who may be added to a mortgage loan to help other borrower qualify for a mortgage. A NOCB is beneficial from an income or credit perspective.

If your kids are ready to pack for college dorm, it is often cheaper to buy a university adjacent condo(with your help as NOCB) than paying rent. If the property is large enough for rent, roommates cover all or most of the PITI and while you are getting appreciation upside. Once your kid has finished college, you and your kid have an asset that can be sold or rented out for income.

Also many of new graduates have to struggle for years on a frugal lifestyle while paying a significant amount in rent and utilities. You could also help to co-borrow when their income or credit score is low, otherwise it may take a while for them to pay towards a new home with the new career and improved income later.

Be sure to weigh the pros and cons of helping your kids buy a house and be familiar with benefits and rules being a NOCB:

  • - Full blended debt-to-income ratios allowed with your kid and you as NOCB

  • - You as NOCB does not have to go on title
    (Any of your title changes wont affect the house your kid is living in)

  • - Up to two NOCBs allowed

  • - Reserves can be 100% from NOCB

  • - 100% of down payment can be from NOCB up to 80% CLTV

  • - 5% of down payment must be from occupant borrower if CLTV is >80%

  • - Occupant borrower must have 2 years US credit history

  • - Up to 90% CLTV allowed

  • - One unit properties only

  • - If NOCB is not a family member, occupant borrower must have 50% debt-to-income or lower

Basic guidelines:

40% max DTI

12 months PITI for all properties

Minimum Credit Score 680 – no major adverse credit allowed

Available programs: 3/1, 5/1 and 7/1 Arms

Please feel free to contact us for rate details.