Co signing for a house for family

amother

Sat, Aug 24 2024, 8:27 pm

My family is asking us to co sign for a house they want because they’re not making enough money to show they can afford it.
Anyone do this? Does it affect us later on if we want a house, car…….
It’s hard to know if it can affect us later on

amother

Lightgreen

Sat, Aug 24 2024, 8:28 pm

I would never do this and I would never ask someone to cosign for me either

amother

Cyclamen

Sat, Aug 24 2024, 8:30 pm

Don't do it. CV, they can't make their mortgage payments, it's going to hurt you. If their house winds up in foreclosure, you will have trouble getting a loan of your own.

Molly Weasley ↓

Sat, Aug 24 2024, 8:30 pm

Who's the "family"? Kid? Parents? Sibling?

It can effect you, but that depends on your financial situation
Also, make sure there's a lot of money in a "escrow" account you control to ensure that the mortgage is being paid, if you decide to go with it

amother

Zinnia

Sat, Aug 24 2024, 8:30 pm

My father has terrible credit because my brother was struggling to pay his mortgage for a few mom years and my dad was a co-signer.

I wouldn’t do it unless I was in the position and willing to pay the complete mortgage if needed.

amother

Cornsilk

Sat, Aug 24 2024, 8:32 pm

I wouldn't. Unless I had enough extra money to pay their mortgage if need be. If they default it will mess up your credit

lavendar310

Sat, Aug 24 2024, 8:33 pm

My brother in law asked us. We very nicely declined. If you cosign and he defaults that means YOURE responsible. I didn't want his million dollar mortgage on my head.

allthingsblue

Sat, Aug 24 2024, 8:33 pm

It can affect you in a big way if they can’t make their mortgage payments.

amother

Bluebell

Sat, Aug 24 2024, 8:34 pm

As someone in the mortgage business, it is very common to do for a family member. It does not affect you getting a loan down the road as long as you can prove that they have been paying the loan each month for a year or so. At the time of you getting a loan you will need to provide the proof.

You are responsible though for the loan if they do not pay. If they default it goes on your credit.

Only do this if you feel they are responsible and are willing to pay it each month

ra_mom

Sat, Aug 24 2024, 8:35 pm

Only do it if you can afford to and are willing to pay their mortgage every month. Because that's what you're signing to be responsible for.

amother

Lavender ↓

Sat, Aug 24 2024, 8:36 pm

OMG never! Do not do this.

You will end up paying two mortgages. Say no. Say no. Say no!

Don't ask me how I know Sad

It's a horrible thing to ask someone you supposedly love.

↑ Molly Weasley ↓

Sat, Aug 24 2024, 8:39 pm

Another option, assuming the trust is rock solid, is that You buy the house and have them pay the mortgage. Make sure there a heter iska in place

If they default, you can at least sell the property and move on with your life.

chestnut

Sat, Aug 24 2024, 8:46 pm

If they aren't making enough money to show they can afford the mortgage, how will they be paying it?

amother

Offwhite

Sat, Aug 24 2024, 8:53 pm

Hi we did this many years ago out of the goodness of our heart. The relative has made every single payment that’s not the issue.

The issue is that we recently wanted to take out a home equity on our home but was only given a very low amount because we had too many loans on our name. The mortgage we co-signed on is counted as if it’s a second home we own. I know everything’s bashert it was a rea disappointment

amother

Dimgray

Sat, Aug 24 2024, 8:56 pm

chestnut wrote:

If they aren't making enough money to show they can afford the mortgage, how will they be paying it?

Undeclared income presumably? Which would suggest they are not scrupulous in their financial dealings and make me even less inclined to get involved.

amother

↑ Lavender ↓

Sat, Aug 24 2024, 9:00 pm

Molly Weasley wrote:

then you have to evict your sibling and his family from their home. Fun times...or even better, your own parents.

The only people who should be doing these things are people who can afford to cover the mortgage without thinking about it.

↑ Molly Weasley

Sat, Aug 24 2024, 9:07 pm

amother Lavender wrote:

I respectfully disagree, it has to be communicated in advance. Also, it's not an eviction the house gets sold. They deal with the new owner

amother

↑ Lavender ↓

Sat, Aug 24 2024, 9:09 pm

Molly Weasley wrote:

I respectfully disagree, it has to be communicated in advance. Also, it's not an eviction the house gets sold. They deal with the new owner

I feel like selling a house out from under a parent/sibling is not the best way to promote a good relationship.

Much better to not enmesh finances to begin with.

amother

Chartreuse ↓

Sat, Aug 24 2024, 10:15 pm

Coming from the other side- it’s only thanks to a sibling who graciously co-signed that we bh got a mortgage approval. And no, it has not affected sibling in any which way (other than the immeasurable schar)

amother

↑ Chartreuse

Sat, Aug 24 2024, 10:16 pm

chestnut wrote:

If they aren't making enough money to show they can afford the mortgage, how will they be paying it?

Could be a newish job or so many other reasons how they can really afford but still need a co-signer