Can I use gift money for a down payment on a conventional loan?

Yes, for primary residence purchases. A donor, typically a family member, provides a signed gift letter confirming the funds are a gift with no repayment expectation. For conventional loans with less than 20% down, some of the down payment must come from the borrower's own funds unless specific exceptions apply. FHA and VA allow 100% gift down payment.

How long do I need to be employed to qualify for a mortgage?

Most lenders require 2 years of employment history in the same field, but it does not need to be the same employer. Recent college graduates entering their field of study can sometimes qualify with less than 2 years' history. Gaps in employment are evaluated case by case, a recent return to work typically requires 1 paycheck to document reinstatement.

Does getting pre-approved hurt my credit score?

A hard credit pull for a full pre-approval typically drops a score by 2–5 points temporarily. Multiple mortgage inquiries within a 14–45 day window are grouped into a single inquiry for scoring purposes, so shopping with multiple lenders in that window has minimal additional impact. Dan starts with a soft pull for pre-qualification, which has no score impact.

Can I buy a house with a 580 credit score in California?

Yes, through an FHA loan. The FHA minimum is 580 with 3.5% down (some lenders require 620+). Conventional loans generally require 620 minimum. With a 580 score, FHA is typically the most accessible path. Working on credit in the 60–90 days before applying can improve the qualifying rate significantly.

What is the minimum down payment to buy a house in Bakersfield?

Veterans can buy with 0% down using a VA loan. USDA loans also offer 0% down for qualifying rural and suburban properties around Bakersfield. FHA loans require 3.5% down (580+ credit). Conventional loans require as little as 3% down with qualifying income and credit.

Can part-time income be used to qualify for a mortgage?

Yes, if you have a 2-year history of part-time employment and the income is expected to continue. The income is averaged over 24 months. If the hours or rate of pay has recently decreased, lenders may use the lower current figure rather than the 2-year average.

How a Cosigner Works on a Mortgage (And When You Actually Need One)

Buying a home in Bakersfield is more achievable than many people think — but sometimes the numbers don't quite work on paper. Maybe your income is borderline, your credit history is thin, or your debt-to-income ratio is just a hair too high. In those situations, adding a cosigner to your mortgage application can be the difference between an approval and a denial.

But cosigning a mortgage isn't as simple as just adding someone's name. There are real financial implications for both parties, and the rules vary depending on the loan program. Let's break it all down.

What Exactly Is a Mortgage Cosigner?

A cosigner — sometimes called a non-occupant co-borrower — is someone who signs onto your mortgage and takes on legal responsibility for the debt, even though they won't live in the property. Their income, credit, and assets are factored into the loan qualification, which can strengthen your application significantly.

This is different from a co-borrower who will actually live in the home with you (like a spouse or partner). The distinction matters because loan programs treat occupant and non-occupant borrowers differently, especially when it comes to down payment requirements.

When Does a Cosigner Make Sense?

There are several common scenarios where adding a cosigner helps Bakersfield buyers get across the finish line:

- You have steady employment but haven't been in your job long enough to meet the two-year history guideline.
- Your debt-to-income ratio is slightly above program limits, and a cosigner's income brings it into range.
- You're a recent graduate with limited credit history but a parent with strong credit who's willing to help.
- You're self-employed and your tax returns show lower qualifying income than what you actually earn.

In Kern County, where the median home price remains significantly below the California state average, the income thresholds to qualify are often lower than buyers expect. Sometimes a cosigner helps bridge a surprisingly small gap.

How Different Loan Programs Handle Cosigners

Not every loan program treats cosigners the same way. Here's a quick overview:

FHA Loans: FHA is one of the most cosigner-friendly programs. A non-occupant co-borrower can be a family member, and FHA allows the standard 3.5% down payment even with a cosigner — as long as the cosigner is related to the borrower by blood, marriage, or law. If the cosigner is not a family member, FHA typically requires a 25% down payment, which defeats the purpose for most buyers.

Conventional Loans: Fannie Mae and Freddie Mac allow non-occupant co-borrowers. The primary borrower generally needs to contribute at least 5% down on a conventional loan with a cosigner. The cosigner's credit score matters here — lenders use the lowest middle score among all borrowers to determine pricing.

VA Loans: VA loans are more restrictive with cosigners. Only a spouse or another eligible veteran can cosign a VA loan. A parent who isn't a veteran cannot be added to a VA mortgage.

What Are the Risks for the Cosigner?

This is the part people often overlook. When someone cosigns your mortgage, they're not just vouching for you — they're legally obligated to make payments if you don't. That mortgage shows up on their credit report, affects their debt-to-income ratio, and could limit their ability to buy their own property or take out other loans.

If the borrower misses a payment, the cosigner's credit takes a hit too. And in a worst-case scenario — foreclosure — both parties face the consequences.

Anyone considering cosigning should go in with eyes wide open. It's a generous act, but it's also a major financial commitment.

Can You Remove a Cosigner Later?

Yes, but not by simply asking the lender to take their name off the loan. The most common way to remove a cosigner is to refinance the mortgage into only the primary borrower's name. This requires the primary borrower to qualify on their own at that point — with sufficient income, credit, and equity.

Many buyers in Bakersfield use this as a planned strategy: qualify now with help, build equity and income over a year or two, then refinance solo.

Tips Before Adding a Cosigner to Your Application

Before you ask a family member to cosign, consider these steps:

First, get a thorough pre-approval to see exactly where you stand on your own. You might be closer to qualifying independently than you think. Dan Ardis at Barrett Financial Group runs full pre-approvals for Bakersfield buyers and can show you precisely what gap — if any — a cosigner would need to fill.

Second, have an honest conversation with your potential cosigner about the financial risks and the plan for eventually removing them from the loan.

Third, make sure the cosigner's credit and existing debts won't actually hurt the application. Adding a cosigner with a lower credit score or heavy debt load can backfire.

The Bottom Line

A cosigner can be a powerful tool for Bakersfield homebuyers who are close to qualifying but need a boost. With homes in Kern County still priced well below much of California, the amount of help needed is often smaller than people assume. The key is understanding the rules for your specific loan program and making sure both parties are fully informed before signing anything.

If you're exploring this option, reach out to Dan Ardis to run the numbers and see exactly what it would take to get you into a home — with or without a cosigner.