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lilburnsy6

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If i co-sign on a loan will that tie up my credit if I wanted to get a home equity loan?

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in the eyes of the mortgage company, you haven't tied up your credit, you've tied up your income! because now this loan you cosigned for shows on your credit report as YOURS. they will count it in your debt to income ratio, unless you can prove someone else is making the payments. if you can provide six months canceled checks showing someone else is paying, you *might be able to get away with taking it out of your DTI. but like johnny said above, you are putting your credit at risk by cosigning. 

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One more thing to add.... If you are going to be going for any kind of home loan, I would not be added to any new credit within a year of a home loan.

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Tie Up your credit?

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When you co-sign a loan, You don't "tie-up" your credit. Credit doesn't work that way.  You have a credit score. Lenders use that as a guide to decide weather they will loan you money or extend credit, how much and at what interest rates. Weather you get credit is up to the lender. 

When you co-sign a loan for someone else, you basicly agree to put your credit on the line for someone else. 

You are agreeing to pay the loan if they do not, 

You risk YOUR credit scores if they miss payments or are late with payments.

co-signing a loan for someone with out stable income or a good history of paying thier bills puts your credit at risk for the entire time that loan exists,  and if they were to default, it would stay on yoru credit report for 7 years,  

Very seriously consider co-signing  before signing on that dotted line.

Good luck.  

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EddyTX, johnnybinsea, and penstate04 are pretty much spot on. if your looking for a home loan (purchase or a refi) the co signed debt is a contigent liability and would need evidence of 12 month consecutive payments by the other party  in order to be not counted on the borrowers ratio.

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