Posted on: 20th Jun, 2009 01:40 pm
I have a shaky credit history from when I was in college (my dad lost his job a few months before I finished and I couldn't find a job for 3 months and missed payments). I've been on my own for about 6 months and haven't missed a payment since but my credit score still is low. With the market the way it is, the first time homebuyer tax credit, and the tax breaks you get from owning a house I would really like to buy something. Especially since I looked at what my monthly payments would potentially be - they are the same as renting a house around here (I would end up paying less than I am now with rent from my roommate). My mom has very very good credit and agreed to be a co-signer/co-borrower and our combined debt to income ratio would be about 25%. My credit score is just under 600 so its definitely not good but is there any chance I could qualify for a decent rate with her as a co-borrower(hers is well over 750)?
Gina
Unfortunately a co-borrower or co-signer will not help with your credit score issue. The banks will use the lower of the two scores. So, even though your mom's score is over 750, they will still use yours.
Co-borrowers are used when you need their income or assets to qualify....not their credit scores.
What you need to do is improve your own credit score.
Unfortunately a co-borrower or co-signer will not help with your credit score issue. The banks will use the lower of the two scores. So, even though your mom's score is over 750, they will still use yours.
Co-borrowers are used when you need their income or assets to qualify....not their credit scores.
What you need to do is improve your own credit score.