How to Get a Loan for a House Without a Cosigner
- 1). Retain a cash reserve for your down payment. The ability to make a down payment on the house factors into qualifying for a mortgage. Put aside a percentage of your money with each check. Plan to save a minimum of 3.5 to 20 percent for your down payment.
- 2). Maintain financial reports to show your mortgage lender. Qualifying for a house loan without a cosigner involves the ability to afford the house payment on your own. Lenders estimate affordability by reviewing your income in relation to the house payment. Typically, house payments are kept at less than 28 percent of gross monthly income, says the Home Loan Learning Center.
- 3). Reduce debt balances to get a mortgage. A high debt-to-income ratio may justify a cosigner on the mortgage loan. Eliminate or pay down credit card debt first, and then apply for a house loan.
- 4). Inspect your credit score. If your score is less than 680, you might need a cosigner. Build your score to get a loan on your own. Paying bills on time and debt reduction help boost FICO credit scores.
- 5). Talk to lenders to see if you meet their criteria. Submitting an application for preapproval can tell you whether you will need a cosigner on the mortgage loan. Preapprovals also indicate how much you can afford to spend on a property.
