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dollylee9 · Joined: 19 Jul 2009 Posts: 63 -0.14 Dollars($)

I am seriously thinking of co signing on a mortgage for my sister. Her credit is actually better than mine - 693, 702, 719 vs. 674, 685, 733, but her income is a bit short to qualify. The three questions I have are,
- will the lower credit score interfere with co signing?
- if I co sign on her mortgage, do I get on the title?
- after co signing, what is the best way to make bank remove my name?

gmakerley · Posted: Wed Oct 07, 2009 10:16 am Post subject:

first question: no it will not interfere with your signing (i assume this is an fha loan product);
second question: not as a rule, but i suppose it's a possibility. keep in mind that it will complicate matters for you in the future (as in Q3).
third question: your name won't be removed as a normal course of business; if your sister pays for a period of time, has an increase in income that will enable her to refinance, then she can do that and the loan would become hers alone. as noted in #2, if you are on title, you would still need to be a party to a refinance if and when that time came.

so it appears first of all that there's no trust issue here and that you're willing to cosign; second of all that you now know you're best to not be on title; and third of all, to encourage your sister to get a raise in pay and to make sure she makes all payments as agreed. of course, refinancing is also incumbent upon the property value being sufficiently high enough for her to do so.

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Co signing a mortgage