question about getting a loan

[tigerman]

Can you have a co-signer for mortgage loan? A family member has offered to help me out anyway they can to get a loan but I've never heard of somebody co-signing a mortgage loan.

[mountanddo]

I think it would be a BAD idea for someone to co-sign on a mortgage. Unless that are that rich that if you default they can afford to pay off the mortgage. I've never heard of anyone co-signing a mortgage.

[DesdemonaB]

They wouldn’t be a co-signer they would be a co-borrower which means that both of you are jointly and equally responsible for the mortgage debt. They also would be on the title and you most likely would be asked to enter into a separate legal agreement with the co-borrower. This would be for the co-borrower in order to CTA in case you can’t pay.

I am not a mortgage broker but I read somewhere that a co-borrower is used primarily in order to increase the amount of money that a potential buyer can receive in the mortgage. Their good credit doesn’t cancel your bad. I do remember when I was married my ex’s score was higher than mine, but they had to use both, I dragged us down so I was pulled from the mortgage and only put on the title so their higher score might not help you as much as you hope. But then again that was 10 years and things have changed massively in the mortgage world.

Find a good mortgage broker or lending officer and the three of you will need to sit down and go over any restrictions. I know when my mom and I talked last summer about doing a land contract with her purchasing it was concerned an investment property for her which equaled higher rates, larger lending restrictions, higher insurance etc. We end up scraping the whole thing; it was too much for us to wrap around at the time, we will revisit it in 2013.

There is nothing wrong with having a relative for a co-borrower just be prepared to dot every I, cross every T and have that person in your finance world till you have the ability to buy them out. I would be more afraid of that then anything, they could be ubber nice while signing, then be a critic of every purchase you make, question any home improvement; this is kinda extreme but they could expect full tax credits but you’re the one paying the taxes, etc. People are funny with money.

Good luck with everything, please keep us updated I know I would like to know how it ends as I live in MI too and still might need my mom to help me next year.