If we co-sign on our sons clean mortgage loan,what is our liability
Would this effect our future buying ratios? His debt to our income?
Answers:
It is your house and your liability and on your credit report. If he defaults for any defence, the payments are yours, as well as the taxes, insurance, etc. Give your son a gift of money instead, up to $11,000 per year (I think) for respectively person in your household.
As long as he pays his bills you're fine but if he doesn't you will have to. I know there are adjectives kinds of circumstances, but if there is any style possible way not to co-sign on a mortgage I would highly recommend it, unless you are surrounded by a position to make the payments if for some reason he can't put together them. I co-signed for cars and carried the insurance, but a house payment is a whole different item. I helped with the down salary for my son, but I didn't co-sign. He and his wife had to qualify on their own.
If he doesn't repay, you will assume the payments. So he had better be a good son. Nothing will take place until there is a default but somewhere contained by the financials there will be a notation of the co-signature.
Totaly yours.
The loan is on your credit and is your responsibility until paid.
Even if he makes payments on the dot, the obligation is yours and appears on your credit report, and affects your future credit.
Do not do this. DO NOT DO THIS. Do not do this. Am I anyone clear here. If he needs you to co-sign on a loan to get the house it finances that he cannot afford the payments. He needs to be a big boy and get a commission and save some money and then buy a house. You are doing him no favor here but freshly risking your financial future. If he does not make the payments they come after YOU. Forget in the order of ratios. It is just similar to you are buying the house.
It will show up on your credit report as an amount due. as the loan is also in your signature thus reducing your credit to debt ratio
Related Questions:
Will my mortgage salary be lower if we do a 80/20 loan instead of a one loan?
I know we will be avoiding PMI if we do 2 loans, but if the the rate is higher on the second loan is it worth it? I doubt it would be of any benefit to...
Answers:
It is your house and your liability and on your credit report. If he defaults for any defence, the payments are yours, as well as the taxes, insurance, etc. Give your son a gift of money instead, up to $11,000 per year (I think) for respectively person in your household.
As long as he pays his bills you're fine but if he doesn't you will have to. I know there are adjectives kinds of circumstances, but if there is any style possible way not to co-sign on a mortgage I would highly recommend it, unless you are surrounded by a position to make the payments if for some reason he can't put together them. I co-signed for cars and carried the insurance, but a house payment is a whole different item. I helped with the down salary for my son, but I didn't co-sign. He and his wife had to qualify on their own.
If he doesn't repay, you will assume the payments. So he had better be a good son. Nothing will take place until there is a default but somewhere contained by the financials there will be a notation of the co-signature.
Totaly yours.
The loan is on your credit and is your responsibility until paid.
Even if he makes payments on the dot, the obligation is yours and appears on your credit report, and affects your future credit.
Do not do this. DO NOT DO THIS. Do not do this. Am I anyone clear here. If he needs you to co-sign on a loan to get the house it finances that he cannot afford the payments. He needs to be a big boy and get a commission and save some money and then buy a house. You are doing him no favor here but freshly risking your financial future. If he does not make the payments they come after YOU. Forget in the order of ratios. It is just similar to you are buying the house.
It will show up on your credit report as an amount due. as the loan is also in your signature thus reducing your credit to debt ratio
Related Questions:
Will my mortgage salary be lower if we do a 80/20 loan instead of a one loan?
I know we will be avoiding PMI if we do 2 loans, but if the the rate is higher on the second loan is it worth it? I doubt it would be of any benefit to...