Co-signer for a mortagage

Guest

My boyfriends mother asked him to co-sign a mortgage. She owns her own house, has one rentatl property with 2 other people and wants to get another rental property with the same people. The bank does not like her self employeed incoime and needs my bf to co-sign. We are looking to hopefully buy a house this year, will this affect us when get approved for a mortgage?

smithsussane · Posted: Sun Jan 18, 2009 7:46 pm Post subject:

Hi Curious!

Welcome to forums!

If your boyfriend's mother is unable to pay the mortgage dues, your boyfriend will be responsible for paying the mortgage. The lender will have all the right to ask him to pay the mortgage dues if he co-signs for the mortgage. Moreover if the property goes into foreclosure, your boyfriend's credit will also be affected. As far as I know, if he co-signs for the property, not all lenders will be ready to give a loan to him.

Feel free to ask if you have further queries.

Sussane

gmakerley · Posted: Mon Jan 19, 2009 9:58 am Post subject:

absolutely, it will impact your chances. when a person co-signs a loan, that becomes his or her obligation. so, in attempting to apply for a new loan, that obligation will be considered as a recurring debt - even though he may have never had to make payments.

some lenders will (still) consider accepting documentation to prove he hasn't made payments on the loan, assuming there have never been any 30-day late payments.

co-signing is risky business. not only can it affect your ability to borrow funds of your own in the future, but it can have a devastating effect on a credit report if the primary borrower neglects to pay on a timely basis.

eric1 · Posted: Mon Jan 19, 2009 6:46 pm Post subject:

Curious

I will give you the same advice that I would give a family member....dont do it. There is a reason why that bank does not want to approve the loan for your boy friends' mother. They are concerned about her ability to make the payments. If the bank is concerned then so should you. If his mother misses a single payment then it will negatively impact his credit score and your ability to get the best rate for yourselves when you buy a home. If she defaults on the loan then HE defaulted.

This is not a good situation.

msnover92571 · Posted: Sat Feb 28, 2009 6:55 pm Post subject:

Yes it is very risky to co sign, as they will come after you if the main borrower defaults on the mortgage.

Guest

My credit is not good. My father offerred to assign me in getting a mortage. He offerred to co-sign a loan. will this help me get a mortgage? If so, any suggestions as to where to apply. I went to my bank and they advised me that they only consider the worst score when approving a loan so a co-signer makes no sense in my case.

gmakerley · Posted: Fri Jun 05, 2009 11:17 am Post subject:

you didn't state how "not good" your credit is. that's critical. if your score is below 620, most lenders won't go near you, regardless of a qualified cosigner being available.

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

EB,

Welcoem to the forum.

Typically, a co-singer can only be used in order to increase the amount of money that a potential buyer can receive in the mortgage. That is to say, a co-singer will not help to overcome situations in which credit is the issue.
If your score really bad, it may not help in your situation.

Good luck and feel free to ask

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