CREATIVE Cosigning for FHA Loan & Contract
I'm looking for your thoughts or alternative ideas about this. (I will put my own disclaimer here for my own and anyone else's posts. Not I, nor anyone posting is a legal professional, etc.)
The details, quick and dirty: I want to buy a multiple unit building, 2-4 units using an FHA loan. I have a debt to income issue (discussed on a previous thread) because of a side business, claiming a loss on a schedule C. My significant other will cosign. I will live in the building, my significant other will not (FHA, I believe, requires both parties to live in the premises, except, if an immediate family member cosigns). My significant other will have no financial ties to the property other than helping me out by cosigning (I will be putting down the down payment, managing the property, collecting any cash flow, etc.),
I would like to get a legal contract place stating such. I want to protect my more invested financial holding in the building. Otherwise, it seems as if the cosigner is an equal owner.
** Will this contract protect me, if the worst happened?
Does anyone have experience with "creative" FHA workings like this, or getting a contract in place that goes against loan requirements - other types of mortgages are welcome for informational purposes also? Conventional mortgages may perhaps be similar in having stipulations and others may have partner contracts in place who may provide me with good input.
(Previous podcast guests have indicated that banks may be less concerned about particulars once the loan is in effect as long as the loan is getting paid, such as an investor assuming a loan and the bank rarely initiating the due on sale clause).
If you have experience with contracts in a cosigner-only, with no financial involvement, sort of case, could you please give me some ideas of how they may work when potentially violating the FHA loan? DO they even violate the FHA loan really? Do I need a brick and mortar real estate attorney for what seems to be a simple contract like this, or can I get away with an online legal service? If an online service, does anyone have recommendations?
Again, I realize no legal advice is being given. Thanks, all.