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Can I co-sign my girlfriend to and she can get the tax credit and use my money as downpayment?

My girl friend does not have enough income to qualify for a mortgae, she's earning $1600/monthly(two part time jobs, she has been working on both jobs for 3 years).

She try to buy a home for $150k with 20% down, but I have been told that she only can use $600(I believe it's 45% minus the $20k student loan payment which due when she graduate from school).

How does co-sign works? Can she get the federal tax credit $8000 if I co-sign her? Since I just bought my primary home 2 weeks ago, I do have income to support her, I am earning $79k/year, and with mortgage payment $1700/monthly.
My other question is some of the money still in my bank not hers, is that ok to use my money as down payment?


What does co-sign mean?

 
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April 23 2010 - US
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You will want to speak with an accountant on this issue.  The way that it was explained to me when you file your taxes, you will need to defer the credit to her in order for her to get the credit.  Co-signing on a loan means that you are bother responsible for the payment of the loan to the lending institution.  The downpayment does not have a specific place that it has to come from.
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April 23 2010
Profile picture for wetdawgs
Co-sign means you are responsible for the mortgage if she fails to pay.   You have to have enough income to cover both mortgages if you co-sign.  It isn't something to do lightly, in fact, I would strongly recommend against doing it for a girlfriend.  You may be hooked to her financially for the next 30 years with your cosigning.
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April 23 2010

As mentioned in earlier posts, you will be responsable for the new loan.  Now you can be a non-occupant co-signer and use an FHA loan or for a conventional loan, 5% has to be her own funds.  You cannot use your money for the down payment since it must be from a relative.

You were not clear about where this $600 figure is coming from.  Do you need to pay off the student loan for qualifying?  Are the student loans currently differed for more than 12 months?  If so, the payment wil not be used for an FHA loan. 

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April 23 2010
 
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