Posted on: 03rd Feb, 2009 02:06 pm
Hi there, I am currently refinancing my primary residence but needs a co-signer. Can i use my daughter who lives with me but is not on title nor mortgag?
Yes, you can use your daughter as the cosigner. But she needs to qualify as per the credit and income standards put forward by the lender.
Jane, the co-signer is needed to bring additional income to help you to qualify. In addition, when you add the co-signer then you are also adding that person's credit scores into the mix.
On a personal note, I am not a fan of the co-signer situation. As stated above, the reason the co-signer is needed is because the borrower;s income is typically not sufficient to qualify. However, the co-signer is rarely asked to contribute towards the mortgage payments every month. The result is a very tight money situation for the borrower. If you miss a payment, then it will negatively impact the co-signer's credit often causing relationship issues. Again, this is just my personal opinion regaring the co-sign situation and it is still an option for those who are trying to find a way to purchase their dream home.
On a personal note, I am not a fan of the co-signer situation. As stated above, the reason the co-signer is needed is because the borrower;s income is typically not sufficient to qualify. However, the co-signer is rarely asked to contribute towards the mortgage payments every month. The result is a very tight money situation for the borrower. If you miss a payment, then it will negatively impact the co-signer's credit often causing relationship issues. Again, this is just my personal opinion regaring the co-sign situation and it is still an option for those who are trying to find a way to purchase their dream home.
