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Answers (5)
- Tara Talbot, "Tara Talbot"
- Contributions:147
Sorry, you could co-sign on a regular FHA loan. However, on specialized programs, if you own a home, you cannot participate.
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
Sofia, I concur with others that co-signing needs to be considered carefully. I've worked with many parents who have had problems obtaining financing for themselves after co-signing a loan for their children - and it's not just mortgages. You need to consider any potential car loans, credit cards, etc.
To address your question specifically though - what "first time home buyer benefits" would they by missing out on if you co-sign? That would help us better answer your question.
Update: Just checked with our rep for the CalHFA program - he confirms that NO ONE on the loan application can have owned a home in the last three years. That is just one program and doesn't mean the person you were going to help can't get their benefits.
To address your question specifically though - what "first time home buyer benefits" would they by missing out on if you co-sign? That would help us better answer your question.
Update: Just checked with our rep for the CalHFA program - he confirms that NO ONE on the loan application can have owned a home in the last three years. That is just one program and doesn't mean the person you were going to help can't get their benefits.
- sunnyview
- Contributions:25127
Please reconsider cosigning. Cosigning means that you are legally responsible if the the house mortgage does not get paid. It also means that if you buy again, you must be able to qualify for all the houses that you "own" at the same time under your income. This can make it really hard to buy even with 20% down unless you meet the qualifying ratios.
Co signing with rates where they are today may mean a 30 year commitment on your part since they person you cosign for may not be able to refinance at a lower rate for a looong time. You might want to consider making a gift toward the down payment instead of a co sign. A gift is a one time event and a co sign in this market may be forever.
Co signing with rates where they are today may mean a 30 year commitment on your part since they person you cosign for may not be able to refinance at a lower rate for a looong time. You might want to consider making a gift toward the down payment instead of a co sign. A gift is a one time event and a co sign in this market may be forever.
- Darrell Self, "Darrell Self"
- Contributions:349
You can co-sign as the other person said your debts ( all of them not just the house payment are counted) so you have to be able to qualify for all the debts including the new mortgage.
If the other party defaults then you are help responsible and your credit will be affected so be aware of the implications.
Best wishes.
If the other party defaults then you are help responsible and your credit will be affected so be aware of the implications.
Best wishes.
- wetdawgs
- Contributions:26790
Could you clarify which first time home owner's benefits are of concern? The federal tax credit is gone, but perhaps there are others you are thinking about? Even a second time home buyer is eligible for mortgages for their primary residence with less than 20% down (such as FHA with 3.5% down) (depending on other property ownership situations)
In order to be a co-signer, you must recognize that the mortgage you co-sign will count towards your debt load and show up on your credit report. Therefore, if you currently don't own a home and wish to buy one in the near future, make sure your income is sufficient to cover both mortgages or you'll be stuck unable to purchase a home for yourself.
good luck
In order to be a co-signer, you must recognize that the mortgage you co-sign will count towards your debt load and show up on your credit report. Therefore, if you currently don't own a home and wish to buy one in the near future, make sure your income is sufficient to cover both mortgages or you'll be stuck unable to purchase a home for yourself.
good luck
Can I be a co-signer to a first time homebuyer if i already own a home?
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