Cosigning or Coborrowing Q: My husband and I want to start looking for a home. Our biggest concern is my credit - it is lousy, but his is good. Would it help to have my parents cosign? They have perfect credit and are willing participants, but I spoke with a broker and she said it wouldn't matter. I am pretty sure that my in-laws bought their first home by having one of their parents cosign for them. Am I missing something?
View Answer Q: I have a question about cosigned mortgages. I own a house and have never defaulted on a payment, never had a credit problem, and I want to sell and move to another state. However, I am self-employed and I am concerned about my ability to get a loan. I thought about asking my son to cosign; he knows I've never defaulted on a payment (and he's my only heir). If my son were to cosign, and I continued to make my mortgage payments on time, would this affect HIS ability to get a mortgage for himself in the future?
View Answer Q: I have two questions: 1) What is considered gross income? I am a grad student so I only make $720 a month stipend, $684 child support and take out $16,000 in student loans or Federal Grant Money, depending on the year. I would be a first time buyer, and my credit score is a Fair 662-692 with a Bankruptcy from 1998. My parents and I have discussed cosigning since I pay more than their mortgage payment a month in rent! 2) What are the requirements for being a cosignor and do they take all of our incomes into consideration?
View Answer Q: I recently purchased a home with a co-signor because my credit left something to be desired. Now, I have had a falling out with this person and would like to get it cleared up. I was told by a relative that a quitclaim deed could be done, and his name would just be removed by taking it to the courthouse. Is this accurate or must I go through my mortgage company and get it refinanced under my name only?
View Answer Q: I purchased a home with my mother three years ago as a co-borrower. I never lived in the house and she made all the mortgage payments on time. I recently got married and want to buy a house with my husband. My problem is my mother does not qualify for the house on her own. Is there any way my name can be removed and my mom still keep the house? She can afford it on her own income, but her credit is a little bad.
View Answer Q: I am thinking about purchasing a home with my boyfriend. I have a house right now with quite a bit of equity that I would be putting down as the down payment, he does not have any. The loan officer said that since his credit rating is higher than mine he should be listed as the borrower and me as the co-borrower. I am hesitant and don't want to do that. I think I should be listed as the borrower just in case things don't work out in the future. What do you think I should do?
View Answer Q: I own a house and have never defaulted on a payment, never had a credit problem, and I want to sell and move to another state. However, I am self-employed and I am concerned about my ability to get a loan. I thought about asking my son to cosign; he knows I've never defaulted on a payment (and he's my only heir). If my son were to cosign, and I continued to make my mortgage payments on time, would this affect HIS ability to get a mortgage for himself in the future?
View Answer Q: I am looking in to cosigning on my sister's refinance but am unsure of everything that it would entail. Are there some basics you can advise me on to start? How do lenders feel about that?
View Answer Q: My son wants me to co-sign on a mortgage loan. As much as it frightens me to do this I want to help; I want a good future for my kids. He promised me he will pay the mortgage always on time. I was told by my son that the lender or person handling the loan told him the lender can take me off the loan in a year at the most. Please let me know if this is possible, what needs to be signed and whether it will stand up in court.
View Answer Q: About 4 years ago, I had a friend sign as a co-borrower for my mortgage loan. He doesn't live here, nor did he even make payments. Now I am planning on building a new home and need to sell this one. Does he have any legal rights to half of the equity? I need all of this money for a sizable down payment. Will he have to be present when I sell the home or can documents be notarized (he lives 3000 miles away); what about a quitclaim?
View Answer Q: I co-signed a mortgage for my brother almost 5 years ago as his wife could not due to bad credit (and his was not too good either). I am on the title of the house jointly with my brother as well as the mortgage. Now I want to buy my own home and need to get this debt out of my name. What do I have to do to get this done?
View Answer Q: My wife co-signed a loan for her daughter to buy a home that my wife owned. My wife died before the mortgage was paid. Is my wife's estate liable for the loan?
View Answer Q: I just got news that our co-signor who does not live on the property is planning to declare Ch 7 bankruptcy. My mother & I have been making the mortgage payments for the last 5 years without his help, however he and my mother are still on the deed of trust together. He advised us that it would make life easier if he includes the house in the bankruptcy, but I am unsure of how this will affect us. Please help!
View Answer Q: What happens if we want to help our children buy a home?
View Answer Q: Co-Signing or Incurring Additional Debt?
View Answer Q: What are the complications if I have someone co-sign for me when they are not going to occupy the property?
View Answer Q: (1) My friend has asked me to sign papers for him so that he can refinance his home to 15 years instead of 30. What are the risks of helping someone refinance their home? They say they did not qualify for the refinancing because their credit history is not good enough." (2) "My parents want me to co-sign a mortgage loan for them. They filed for bankruptcy 3 years ago. If I co-sign the loan for them, can I get released from the loan later?
View Answer Q: My husband is on the mortgage with his mom. She makes payments, but she is usually late. We are trying to buy a home of our own but cannot get his name off the mortgage because she doesn't qualify by herself or even with her husband. Do you have any advice?
View Answer Q: For tax purposes, my son needs to buy a house…he is young and just establishing credit, makes a very good salary. The lender says my wife and I can get a loan; we don't want to occupy, but he does and he wants to make the payments. We are helping him with the down payment. Our goal is to get him into a house and for him to use the deductions. Please advise.
View Answer Q: Can a 97-year old grandmother cosign a loan for her granddaughter? What are the limitations?
View Answer Q: We have good income, but to the bank we have really tricky accounting due to major passive losses in an S-Corp interest. Because of our excellent credit, the bank offered to give us an Income Stated loan for just 1/2% over conventional loans. Even though we don't need the financial help, my father can cosign, thereby getting us out of the Income Stated category and into a better rate. However, he is likely to pass on during the life of the loan. In order to keep the loan out of his estate, we would be forced to refinance, maybe at a much higher rate than today. Are there other ways to handle the cosigning situation if my father dies?
View Answer Q: I have cosigned for my son on a house that he has rented out. He has made all payments. What is the best way to take the tax deduction? Should he; should I? Are there conditions that would preclude us taking the deduction?
View Answer Q: My cousin will sign as co-borrower on an equity line of credit for me. How will this affect his taxes, i.e., does he have to declare the monies that I, as the borrower have received, as income on his tax returns?
View Answer Q: My husband signed as co-borrower on a student loan for my step-daughter without my knowledge and he seems to think that this would not affect our credit? I say it will. How can this affect our credit; my credit?
View Answer Q: My husband and I would like to buy a new home. We have been pre-approved and have excellent credit. We have co-signed on two of our daughter's car loans and on a mortgage for the other one. The one with the mortgage will be filing for a divorce soon and is applying for a personal loan of $7500 to pay off her other loans, so she will have one payment instead of five. She has asked us to co-sign for that loan as well.
When all is said and done we would be co-signers on four loans. All of our children have paid their loans on time if not early. My question is should we co-sign again? We really would like this new home, but do not know how it will affect our credit with all the co-signing going on.
View Answer Q: I am starting to look into buying my first home. I have been renting thru college and am now a graduate student; however, I just accepted an offer of full-time employment. I would like to know how much emphasis is placed on past job stability, and whether a co-signer would alleviate the problem (if there is one). Let me clarify my situation better, I have what seems to be a good credit score, around 750, but my fiancée has a foreclosure under her name. I have been out of work for about 5 - 6 months with two short temporary positions before this. I have no real problem with my credit, and I have never been late on any rent payment. I don't have any major debts (no car payments) other than 2 or 3 credit card payments, and my parents, who also have excellent credit, have offered in previous conversations to co-sign if needed. I realize that co-signing is a major commitment, and even though I would not want them to have to make that commitment, I currently feel that because I just started my job I will have no choice but to ask them for help. I will appreciate any help you are able to give me.
View Answer Q: My husband and I want to get a home for us and our two children. The problem is that in our college years we both made some bad decisions and ruined our respective credit ratings. Mine is only 530 and my husband's is worse. We have a great income and my in-laws have agreed to cosign but I have no idea where to go from here or if, even with a cosigner, we could get a loan at all. I would really appreciate your insight as to how we proceed from here. Thank you.
View Answer Q: My partner and I have lived in a home for three years that she owns (I am not listed on the mortgage). When she bought the house, she had near-perfect credit. Since then, she's accumulated some debt, had a few hits to her credit bringing her score down to around 570. We've been working very hard to eliminate her remaining debt of about $10,000, managing to pay about $2,000 of it just this month alone. My situation is different - I don't have much debt. I have one student loan in the amount of $3,500 and only one credit card with a limit of $500 that I use and pay off every month in its entirety (in an effort to bulk up my credit). My score is just over 600 and seems to be going up the more effort I make. At any rate, we'd like to sell the home we live in (meaning, my partner will really be selling since it's in her name) and buy a different home. Do you think I will be able to co-sign on the mortgage? More importantly, will there be any benefit for me doing this?
View Answer Q: My husband and I both have bad credit; mine is in low 400s, his is a little better. We recently moved from where we were living and as a result both have new jobs. We both make pretty good money and his father with perfect credit has agreed to cosign for a house we've found. This is my dream home, and we are actually getting it for $45,000 which is WAY under its appraised value. It has almost 2 acres, less than a minute from the biggest lake in our area. The home is in no way a risk for any lender. The only lender we have spoken to says co-signers for home loans only contribute for your income. What did she mean? She couldn’t elaborate. Also, what do you think would be our chances of getting approved with our great income and his father's help?
View Answer Q: I'm getting ready to purchase a house but I have been told that with a cosignor I can get almost 100% financing. Because it would help me get a better loan, I'm considering using a cosignor, but I am more concerned with will he have any kind of rights to the house? For example, if we had an argument could he turn around and say he is taking me to court for half of the house (even if he's just a cosignor)?
View Answer Q: My brother has asked me to co sign on a mortgage for a mobile home. I had initially said yes. However, he just told me that he has to claim bankruptcy. He told me that whether he does it before we sign the papers for the house or after, it will still affect my credit by about 5 points. I was wondering how much it will affect my credit in the future as far as when my husband and I want to get a house of our own and maybe even buy a business? Will banks see this as a negative thing on my part to the point of not lending me the money?
View Answer Q: My nephew has asked me to cosign a mortgage as he and his wife were told they have too much debt ratio. I have given it consideration and will do it as I believe they are credit worthy although I will ask them to sign a document agreeing to my minor terms. I am very private about my financial situation however and do not want anyone outside of the lender to have details. Is the lender required or will they disclose my personal information to my relatives?
View Answer Q: I am a college student trying to purchase a home because of the low market and hopefully sell it when I graduate for profit. The problem is I have a 600 credit score and my income is only 15000 per year. My dad is going to help with a down payment. Is there a way to get a loan without a co-borrower? And if I do have a co-borrower, how does that improve my chances of getting approved for a loan? I'm only looking for a 100,000 dollar loan at the most.
View Answer Q: Our mortgage broker has advised that we need cosignors in order to qualify for our purchase with an FHA loan. The loan officer says they will not average my income over the last two years because I am a financial planner and my income decreased last year. Is this true and what are the complications? We have excellent credit scores and good job history.
View Answer Q: My sister wants me to cosign on her mortgage for her house. Will this affect my credit in any way? Will this lower my credit score? And would this affect me if I want to get my own mortgage in the future?
View Answer Q: If you co-sign for someone, do you automatically become part owner of the property? What if they want to sell? Can you collect on the profits of the property?
View Answer Q: I am a retired teacher on a fixed income. My son wants me to be a co-borrower for a home. He would make all the payments. My home is worth about $900,000, and I have no other assets. If he was to default on the loan, could my house be at risk of being taken to pay off his house mortgage? Or could it just hurt my credit rating? I wouldn't want that, but it's better than losing my personal house.
View Answer Q: I'm very interested in a townhome and unfortunately I would need a cosigner. My parents have bad credit. My fiancé does not show income (he works off the books) and we are getting 20% down as a gift. What can I do in order to get this house with out a cosigner??? Please advise!
View Answer Q: My parents lost their home and filed for bankruptcy in the last two years. Prior to that they had very good credit; my stepfather was in an accident that put him out of work for an extended period which contributed to their financial trouble. They are looking to buy a new home and have found one that is in their price range, and they asked me to consider putting the loan in my name with my grandparents as cobuyers. My parents would make the full payments and reside in the home. This would be my first home loan with my personal goal of buying a home in 5 years. My parents would let me keep the tax credits to save for a down payment on my own home and would have the home transferred to their name in 3-4 years. I am unsure if this poses legal problems or would be a problem when I go to buy a home in 5 years.
View Answer Q: My brother asked my husband to cosign for a home. My question is if he accepts to cosign for him, can it affect if my husband wants to get a loan for himself in the future, for example, a $60,000 loan to purchase a mobile home?
View Answer Q: Seven years ago, I was coerced into cosigning on my sister's mortgage. I was only 23 at the time, a new college graduate, and I did not have much credit. It wasn't bad credit, just not a lot. Earlier in that year, I did not have enough credit to get a car loan on my own, so I had to get a cosigner myself. I did not want to sign on this loan, but I was young and naive, and bullied into it both by the loan originator plus my sister and brother-in-law. My sister is a stay at home mother with no income, so they wanted to use my income. Their lender refused to let me go after having written a formal assumption letter, basically begging to come off. I now believe that I have fallen victim to predatory lending practices, as I did not meet the qualifications of a coborrower. I have been married for five years now, and we would like to purchase our own home. I feel trapped, and could really use some advice. My husband and I just want to move on with our lives. I would have excellent credit, if it weren't for my sister and her husband. I've never made a late payment on anything, ever. My credit was ruined by them before I was able to build it up.
View Answer Q: I looked over your web site and couldn't find the answers to my concerns. We cosigned on a mortgage for our son and daughter-in-law; they fell behind so they wanted to refinance, and we cosigned again. Now, our son has been laid off and is behind again; we have made the payment several times over the last two years. We have ignored the last few late payment notices thinking the kids needed to step forward and be responsible. But just yesterday we got foreclosure notices, with only 27 days to take action. The kids are in debt beyond realistic measures and are considering bankruptcy and we are concerned about the effect on our credit. My husband suggested we buy the house in our names and rent to them. I think this would just enable them not to pay the rent because they know we would. It was suggested they sell the house but the value may not be enough to cover the mortgage. Any other suggestions?
View Answer Q: My husband co-owns a condo with his brother and sister-in-law. They have two loans out, one bigger and one smaller. They are trying to pay off the smaller one to refinance this summer. The condo was bought for 375k, they owe about 300k, and it is now worth about 125k. My husband and I want to get our own home, but in order to do that we need to get off of the mortgage/loans on the condo. How can we do this? (Keeping in mind the brother and sister-in-law cannot afford to buy us out, and if we refinance on their credit, they have bad credit scores and a lot of debt.) Any suggestions?
View Answer Q: “I'm going to be attending veterinary school in Manhattan, KS in the fall. My mom thinks that it would be a good idea for her to buy a house for me while I'm there, selling it when I graduate. The idea is to buy a house with another unit that is income producing, and I would use that to pay the mortgage and utilities and use my loan money for any other expenses. There are many of these properties available for 100k to 140k in this college town. My husband (a graduate student on a 16k stipend) is uncomfortable with my parents buying for us because he doesn't want us to be babied (this year we're 28 and 29), so I was thinking that we could "co-buy" it with my parents, so that we are shouldering more of the responsibility and gain some more credit in the process. My parents have perfect credit (pretty much 850, about 500k or more income from dental clinic and nursing job), and my husband and I are both at about 760 or more, no bad marks, just "young credit." We have about 60k in college loans combined, but I do have a work history from the past two years. I know that we won’t qualify for a loan on our own, but I wonder if we could qualify for an FHA 3% loan, or something like that with my parents as cosigners. My mom might even just pay the 20% (to avoid PMI) and I will pay her back on my own at the same time I pay the mortgage. Thanks so much for this website. I've learned so much already, and I hope that you can give me some guidance!
View Answer Q: My husband and I want to buy a house. Our score is 566. Could we get a loan with a cosigner that has perfect credit?
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