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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?

Posted on: 20th Mar, 2011 07:57 am
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
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
Posted on: 20th Mar, 2011 08:55 am
Thanks. Im not going to default... My question is can my parents not buy a house or car if I do not default. Thanks
Posted on: 20th Mar, 2011 09:26 am
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
Posted on: 20th Mar, 2011 07:42 pm
they could buy anytime as investment property
Posted on: 20th Mar, 2011 09:31 pm
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....


" 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 :arrow: :arrow: :arrow:
Posted on: 21st Mar, 2011 05:06 am
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!
Posted on: 24th Mar, 2011 02:59 pm
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