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if my parents cosign on a mortgage for me will this effect them being able to purchase a new car or home?

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naomicfreeman Joined: 20 Mar 2011 Posts: 1 1.46 Dollars($)	Posted: Sun Mar 20, 2011 7:57 am    Post subject: if my parents cosign on a mortgage for me will this effect t Like 0 Dislike 0 i have almost a perfect credit score for my age (im 27) and i make a great living, about 85k. i want to take advantage of the housing situation and buy a foreclosure but in order to do that i need my parents to co sign because i took a year off to travel europe and do not have proof of this income for 2 years which i need to get approved. now my parents they are saying they spoke to someone and if they co sign for me they cannot buy a house or car and it will effect them. is this true? i will not default on my payments, i would never buy a house if i wasnt sure i could make t he committment. thank you
dipaligopale Joined: 25 May 2010 Posts: 790 22.70 Dollars($)	Posted: Sun Mar 20, 2011 8:55 am    Post subject: Like 0 Dislike 0 Hi naomicfreeman, Welcome to Mortgage fit, It is true that your parents won't be able to get another home if you ever default.Certainly this is their concern....Now what you should convince them is that...After 2 yrs (by which you can build a employment history necessary to get the mortgage ) you can purchase the house on your name and that can be used by your parents... This is how you can get the things done.... Feel free to ask any further query if you have..... DIPA _________________ 1.The best of intentions must still have directions !--Unknown author 2.When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?" - Sydney J. Harris
Guest	Posted: Sun Mar 20, 2011 9:26 am    Post subject: Like 0 Dislike 0 Thanks. Im not going to default... My question is can my parents not buy a house or car if I do not default. Thanks
jameshogg Joined: 20 Dec 2005 Posts: 10460 Location: Nevada 987.57 Dollars($)	Posted: Sun Mar 20, 2011 7:42 pm    Post subject: Like 0 Dislike 0 Hi Guest, If your parents co-sign for you, then it might be bit difficult for them to qualify for a new loan to buy a car or a home. The lender will want them to pay off the existing loan before he gives them a new loan. Thanks
lm Guest	Posted: Sun Mar 20, 2011 9:31 pm    Post subject: Like 0 Dislike 0 they could buy anytime as investment property
dipaligopale Joined: 25 May 2010 Posts: 790 22.70 Dollars($)	Posted: Mon Mar 21, 2011 5:06 am    Post subject: Like 0 Dislike 0 But again going for the investment property is not the right option because one will not be able to get the tax benefits....Apart from that higher down payments are required.... Solution provided by me in the above post could turn out to be a perfect option.... Quote: After 2 yrs (by which you can build a employment history necessary to get the mortgage ) you can purchase the house on your name and that can be used by your parents... Feel free to ask any further query if you have................ DIPA
greg12 Joined: 30 Dec 2010 Posts: 27 6.20 Dollars($)	Posted: Thu Mar 24, 2011 2:59 pm    Post subject: co-signing parents Like 0 Dislike 0 Saying your parents won't be able to buy a house or car is irresponsible on the part of whomever said that. They may be able to buy another house but if you get an FHA loan (the easiest with co-borrowers) they won't be able to get another FHA loan. If they go conventional, their new lender may not count the payment against them if you can demonstrate 6-12 months of payments made on time (lender's call). By co-signing for you, they are creating another debt that will show on their credit report and may or may not have an impact on their debt to income ratios when it comes to qualify for other credit. Good luck!

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