|This is a new policy for owner occupant transactions involving a non-occupant co-borrower. This is allowable only on FHA insured owner occupant sales, where an owner occupant is required to have a co-borrower that meets FHA underwriting requirements. The new policy is as follows:|
- 1. The non-occupant co-borrower may have their name placed on Line 2 of the Sales Contract. The non-occupant co-borrower can not sign the owner occupancy agreement.
- 2. The sales contract should reflect that it is an owner-occupant transaction. The non occupant co-borrower does not sign the sales contract.