Primary residence home loan?

Deal Score0

I’m trying to use the first time home buyer program, primarily for the zero money down. The house that I want exceeds the limit for my income. Because my wife has bad credit, she isn’t able to co sign on the loan (or it wouldn’t really help my loan amount is what I mean).

If my mother in law signs for the loan and we lived in the house would that constitute fraud? It would be a primary residence loan, but she wouldn’t actually live there 100% of the time, probably not even 5% of the time. Anyway, if she did that, what amount of time would she have to be at the house and would it be illegal for us to live “with her” without her there? Would all the taxes and utilities have to be in her name too? Could I avoid all this by using her as a co applicant on a loan and still use the first time buyer program?

1 Comment
  1. Reply
    February 12, 2014 at 9:58 am

    If she is not a first time home buyer also then you can’t have her on the loan and use the first time home buyer program 9everyone on the loan has to be a first time home buyer). She can go on the loan no problem (assuming you are not pretending she is an owner occupant), and still not live there, but she will also be responsible for the mortgage (so if you couldn’t pay the loan at any time in the future it would destroy her credit too, even though she never lived there).

    Leave a reply

    Register New Account
    Reset Password