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Co-Signing on a loan
A relitive in purchasing a home and needs a Co-signer. How will co-signing on a home loan effect my credit score?

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Recommend You Don't!!!

Helpful to 2 out of 3 people

Buying a home usually requires a mortgage of up to 30 years.  Do you want to be obligated to pay for your relative's home for the next 30 years?  If they should default, you'll be paying off the loan and you won't even be living in that house!!

And, if you should want to buy your own house in the future, this mortgage load will kill that chance real fast!!

FYI-The majority of professional financial planners advise against co-signing anyone's loan and I have to agree.  If your relative can't afford the down payment and monthly payments for a home loan and can't qualify for a mortgage without a co-signer, then they shoulkd either save up the money to buy a house outright or continue renting (which isn't a bad idea, really).

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Agreed with the previous commenter. he answer is ABSOLUTELY NOT. You need to understand that by being a co-signor it is as though you are the home owner. Not only will you have hundreds of thousands of debt on your credit from the loan, any negative thing that can happen in the next 30 years will hit your credit as though it were your home. Every 30 day late payment will be on your credit, if the house goes into foreclosure that will be on your credit and you will be financially responsible for paying for that, meaning they will be hunting you down for payment.  Co-signing a 3-year car payment is one thing, but a 30-year home loan, absolutely not. You need to tell that relative to take whatever downpayment they have saved up and put that toward paying off their other debt and improving their credit.  If they need a co-signer, they have no business buying a house. Tell them to repair their credit, refer them to this site to help them, and once their credit is repaired, then apply for their home. They can easily raise their score significantly in 6 months and try again (I raised mine 100+ points in 6 months).

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