My daughter is buying a house with an FHA loan but does not have enough income to qualify, so she needs me as a co-signer. The loan originator is claiming that, by FHAs terms, if I am co-signing, I must also be a co-buyer (eg. I must also be on the deed and sign the mortgage). I have asked our contact at the originator if they can point to the FHA rule or regulation that requires this and she is looking in to it but hasn't gotten back to me yet.
I don't have a major problem with being on the deed - it won't be a deal breaker. But being on the deed does open additional liabilities for me that don't come with any additional benefits. So if I'm not absolutely obligated to do this, I'd rather pass. Has anyone heard of this or know more about it?