Posted on: 29th Apr, 2009 12:07 pm
I am self employed with a credit score of 756. I make 39,000/yr and I need a 140,000 loan. The lender says I don't make enough income & I require a co-signer. What is the lender looking for in a co-signer? Income, credit score, assets, etc?
i suppose you asked this question under the name of "cece" and i just answered it. however, since you stated a dollar figure for income here, i will answer.
based on $39K annual income, that loan amount wouldn't seem to be excessive for you, but then i don't know what other debt you have. also, a lender is going to look at a 2-year average of your income, so if that average is somewhat less, you'd have more trouble qualifying.
the cosigner's income simply has to be sufficient; there's no specified amount. credit scores for all borrowers must meet guidelines, at 620. assets in general must be sufficient, once again.
based on $39K annual income, that loan amount wouldn't seem to be excessive for you, but then i don't know what other debt you have. also, a lender is going to look at a 2-year average of your income, so if that average is somewhat less, you'd have more trouble qualifying.
the cosigner's income simply has to be sufficient; there's no specified amount. credit scores for all borrowers must meet guidelines, at 620. assets in general must be sufficient, once again.
Hi Guest,
Your imcome looks suffcient for you to qualify for the loan. But your debt to income (DTI) ratio is also taken into consideration by the lender when they approve your loan application. Thus, as George had mentioned, if you have too much of debt in comparison to your income, it might not help you qualify for a loan. As far as the co-signer is concerned, he/she also has to fulfill all the credit, income related requirements like any other borrower because he/she would be as much responsible for the loan as you would be as a primary borrower.
Your imcome looks suffcient for you to qualify for the loan. But your debt to income (DTI) ratio is also taken into consideration by the lender when they approve your loan application. Thus, as George had mentioned, if you have too much of debt in comparison to your income, it might not help you qualify for a loan. As far as the co-signer is concerned, he/she also has to fulfill all the credit, income related requirements like any other borrower because he/she would be as much responsible for the loan as you would be as a primary borrower.
Hi, Yes you alone seem very close to qualify by yourself. But as others have stated above the co borrower must meed the same requirements as you. Min fico score. Good DTI ratio and enough income for you two together to qualify.