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tall · Joined: 17 Jun 2009 Posts: 1 1.35 Dollars($)

A friend has asked me to co-sign on his FHA mortgage for a first time home buyer. The intent is that I would not be part property owner, but a guarantor on the loan. At what time can I opt out of the guarantor status? He was told one year and quit claim out, but that's only if my name appears on the mortgage, right?
Thank u

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

tall

Welcome to the forum

If you are goign to be a co-signer then your name is goign to be on the loan and when you can get out of it will depends on when your frind will be able to refinance by him self. There is no 1 year rule

Just check before you sign anything

Good luck and feel free to ask

jenkin7 · Posted: Wed Jun 17, 2009 11:22 pm Post subject:

Hi tall,

If you co-sign, you will be as much responsible for the loan as the primary borrower. If he/she defaults, your credit will be hurt. The lender can come after you, if the main borrower fails to make the payments on time. Your name cannot be removed from the loan easily. The primary borrower will have to refinance in his/her name to take your name off the loan.

brian3 · Joined: 09 Jun 2009 Posts: 80 21.31 Dollars($)

You can remove your name from the deed at anytime by doing a quit claim deed, you can only remove your name from the note by doing a refinance into the other persons name and they must qualify on their own for that to happen. Take a look at alot of the other posts from people in the forums, its a risky proposition.

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Good luck tall

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Co-signing for the FHA mortgage for first time home buyer