Cosigning and mortgage question

[Anonymous]

Hello,

My son is finishing up college.  He has asked me to cosign for a small student loan (less than 6,000 for his remaining 3 classes).  However, I will be purchasing a house, hopefully, within the next few months.  My credit score is excellent (almost perfect) and I no longer have any credit card debt (paid off about 10,000 worth of credit card debt recently).  My question is:  If I cosign for him, will it prevent me from being approved for a mortgage? 

** Side note:  My sister (has excellent credit with little to no debt) will be a Co-borrower.

Please Help!! 

[Anonymous]

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Davinci001 wrote:

Hello,

My son is finishing up college.  He has asked me to cosign for a small student loan (less than 6,000 for his remaining 3 classes).  However, I will be purchasing a house, hopefully, within the next few months.  My credit score is excellent (almost perfect) and I no longer have any credit card debt (paid off about 10,000 worth of credit card debt recently).  My question is:  If I cosign for him, will it prevent me from being approved for a mortgage? 

** Side note:  My sister (has excellent credit with little to no debt) will be a Co-borrower.

Please Help!! 

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It all depends on your debt to income ratio.  It most like wont affect getting approved just how much you'll get approved for. By cosigning for the loan, you have to add the monthly payments into your debt as if you are paying them even if your son is the one making the payments

[ShanetheMortgageMan]

Will the student loans be in repayment or will they be deferred?  Sounds like they might be deferred.  If you are going for FHA financing (which you might need to be if you have a co-signer and don't have 5% down from your own funds) and the student loans are deferred for 12 months from your closing date then they won't be included in the debt to income ratio calculation.

[Anonymous]

His payments will be deferred until 6 months after he graduates.  However, he will be continuing his education and going for his masters in business administration.  I am pretty sure the loan payments will be deferred until he has completed that as well.

Im not sure about my debt to income ratio, but I can tell you that I the only debt I have are loan payments for my children's education, car payments and rent.   I have no credit card debt, medical bills or anything like that.  Like i said, my credit is excellent and my income is over 70,000 a year (my sister has excellent credit as well and her income is over 80,000).

I want to help him out, but i dont want jepordize my possible mortgage in any way. 

From the info I provided, would you say that I would jepordize it at all? 

All responses are welcome.

[DallasLoanGuy]

how is the payment going to affect your debt ratios?
if you do an fha loan they 'may' not be considered. i say it like that because i havent run accross this before. but i would bet that if you can prove payments are defferred 12+ months(just like the guidelines would be for the student) that you would be ok.
new debt will cost you a handful of points only. what are th scores?

[Anonymous]

The payment wouldn't affect my debt ratio too much at all.  My FICO is 790. 

I wound up Co-signing for him.  Everyone I spoke to said it shouldn't be a problem.  Thanks for all your help.  

[Anonymous]

Just make sure when it goes into repayment it's on auto pay and you can monitor it !!!!!!!!!!

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Davinci001 wrote:

The payment wouldn't affect my debt ratio too much at all.  My FICO is 790. 

I wound up Co-signing for him.  Everyone I spoke to said it shouldn't be a problem.  Thanks for all your help.  

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