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Julymommie09
LIF Adolescent
Member since 1/09 727 total posts
Name:
can't wait
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Has anyone had a co signer for their home?
Long story but bottom line is we need my parents to co sign for us we are approved for 350,000 and my parents for 470,000 we fell in love with a house that is 389,000. Will we get approved for a mortgage if they accept our offer? I will be so upset if we don't get this house I'm in love
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Posted 3/28/12 8:16 AM  |
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MandJZ
Time for Baby #2!
Member since 8/10 4194 total posts
Name:
M
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Re: Has anyone had a co signer for their home?
We were originally going to do this. The only loan (we were told) that could allow us to do this would be an FHA loan. Our situation was different - I'm not from here so my credit (we thought) wasn't established enough to qualify us on our own. We went through the pre-approval process with my ILs as co-signers and made it all work and then found out that my credit was actually pretty solid and we didn't need them - however it IS possible, just find a mortgage person familiar with FHA loans would be my suggestion.
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| Posted 3/28/12 8:35 AM |
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lovemyfamily88
LIF Adolescent
Member since 5/10 641 total posts
Name:
????
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Re: Has anyone had a co signer for their home?
Unless your parents are willing to help you with the mortgage i think this is a bad idea. Usually the bank will preapprove you for more then you can actually afford.
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| Posted 3/28/12 8:59 AM |
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Re: Has anyone had a co signer for their home?
You should talk to a few mortgage lenders to get a better understanding of the rules for co-signers and to figure out if it will work. My understanding is that if the co-signer is going to occupy the house, too (for example, if it were a mother daughter and your parents were going to live with you, but you were buying the house), then it's a lot easier to get preapproved.
For a non-occupying co-signer, which would be your situation, the rules are stricter. You have to be able to "almost" qualify on your own, but just be a little shy on the income, maybe, and have the co-signer push you over the top.
But I know from talking to one of my trusted mortgage contacts that you really can't generalize or assume it will work until you actually have a mortgage professional look at your situation and crunch the numbers.
You will need a preapproval anyway showing you can afford the house before you submit an offer. No seller with an ounce of common sense would accept an offer with no proof of ability to get financing, and no legitimate listing agent would let him.
Even if the co-signing scenario won't work, perhaps you can negotiate the price of the house down to your $350K mark or close to it (I assume $389K is the ask), or find out whether the lender that preapproved you would approve you for a slightly higher loan and if you can handle the payments. Usually, it's roughly $5 more per month for every $1K extra you mortgage. So if you went to $360K, it may up your monthly payment something in the order of magnitude of $50/month.
Hope this helps!
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| Posted 3/28/12 9:20 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Has anyone had a co signer for their home?
Were you approved for a mortgage of $350,000 or house price of $350,000? Because if the sales price is $389,000 and you are approved for $350,000 can you just put down enough of a downpayment so that you will need a mortgage of $350,000?
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| Posted 3/28/12 10:21 AM |
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Julymommie09
LIF Adolescent
Member since 1/09 727 total posts
Name:
can't wait
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Re: Has anyone had a co signer for their home?
We put an offer in @ 379,000 and have 20% to put down
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| Posted 3/28/12 10:43 AM |
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lovemyfamily88
LIF Adolescent
Member since 5/10 641 total posts
Name:
????
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Re: Has anyone had a co signer for their home?
Posted by Julymommie09
We put an offer in @ 379,000 and have 20% to put down
So then you would only need a mortgage for about $300,000...
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| Posted 3/28/12 10:47 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Has anyone had a co signer for their home?
Posted by Julymommie09
We put an offer in @ 379,000 and have 20% to put down
You should be good then. The amount they approve you for is usually the amount of the mortgage...not the amount of the house.
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| Posted 3/28/12 10:50 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Has anyone had a co signer for their home?
You should review everything with your mortgage person. Maybe you could pay down debt in order to qualify for the higher purchase price and that way your inlaws wouldn't be involved in the mortgage.
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| Posted 3/28/12 1:48 PM |
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