100% FHA Financing: How a Second Loan and a Family Co-Signer Made Homeownership Possible
Stronger together. Homeownership made possible. For many buyers, the biggest barrier isn't the monthly payment. It's coming up with the down payment and having enough income on their own to qualify. This success story shows how the right program and the right support can solve both.
The scenario and challenge
The client wanted to buy a home with FHA financing. Even with FHA's low 3.5% down payment requirement, coming up with that money out of pocket was a hurdle, and the client's application needed to be strengthened in order to qualify.
How it was structured
The solution came together in five steps:
1. The solution: As the lender, I used a 100% FHA loan with a second loan program that finances the 3.5% down payment.
2. The support: I brought in the client's father-in-law as a co-signer to strengthen the application.
3. The prequalification: Using the father-in-law's income, I prequalified the client with all the necessary FHA guidelines.
4. The approval: The client met the requirements, and the loan was approved using the 100% FHA financing plus a second loan for the 3.5% down payment.
5. The closing: We closed the loan and made homeownership a reality.
The result
Closed! The client achieved 100% FHA financing with no down payment out of pocket. The second loan covered the 3.5% down payment, and the father-in-law, as co-signer, contributed his income to help the client qualify.
The lesson
Homeownership is often a family effort, and the right lender knows how to put the pieces together. A 100% FHA structure with a second loan can remove the down payment barrier, and a qualified co-signer can provide the income support an application needs. Before you tell a buyer they can't purchase, ask how much cash they really have and whether family support is an option. Real solutions. Stronger families. More homeowners.
Think you need a big down payment to buy? Apply at our online portal or book a consultation at calendly.com/lorenacolin to find out whether 100% FHA financing could work for you.
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