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Message
Can I get some advice on cosigning a mortgage refinance?
Posted on 9/6/16 at 6:46 pm
Posted on 9/6/16 at 6:46 pm
Very unusual situation. A sibling quit his job several years ago to move in with our parents to help my dad who is in failing health which has turned into a 24/7 job for the last 3 years.
He owes roughly 80k on his house mortgage which he's renting but wants to refi to cut his interest rate in half and also his monthly note while he's hamstrung.
He has no income and I can easily afford the mortgage so I was wondering if I could use only my financials to secure the loan?
What do I need to look out for?
He owes roughly 80k on his house mortgage which he's renting but wants to refi to cut his interest rate in half and also his monthly note while he's hamstrung.
He has no income and I can easily afford the mortgage so I was wondering if I could use only my financials to secure the loan?
What do I need to look out for?
This post was edited on 9/6/16 at 6:47 pm
10
Posted on 9/6/16 at 6:51 pm to CAD703X
Making sure you're in the will since you're essentially subsidizing dad's long-term care
Posted on 9/6/16 at 7:07 pm to CAD703X
Just make sure you understand what you are getting in to, this makes you 100% responsible for repayment of the loan
Posted on 9/6/16 at 7:40 pm to CAD703X
Frankly, I would recommend just putting it in your name. Count anything you get from them as a bonus. Otherwise it could turn into heart break and major issues.
ETA: I misunderstood. Yeah I don't see an issue with what you are looking to do but I'm not sure.
ETA: I misunderstood. Yeah I don't see an issue with what you are looking to do but I'm not sure.
This post was edited on 9/6/16 at 8:34 pm
Posted on 9/6/16 at 11:48 pm to CAD703X
I would have him contact his lender and see if an in house refi is possible, some lenders do this to retain notes if they are in good standing, often much cheaper and simpler this way.
I would not take out a loan in my name against property titled in someone else's name, way too many unforeseen things can go wrong on both ends and situations change.
just my 2 cents
I would not take out a loan in my name against property titled in someone else's name, way too many unforeseen things can go wrong on both ends and situations change.
just my 2 cents
Posted on 9/7/16 at 5:47 am to CAD703X
The way I understand lending laws today, his credit/unemployment may be an issue, even with you as cosignor.
Try pinnacle bank. They have the most portfolio products here in TN. Or try your local bank based on relationship may have more pull with underwriter.
Good luck
Try pinnacle bank. They have the most portfolio products here in TN. Or try your local bank based on relationship may have more pull with underwriter.
Good luck
This post was edited on 9/7/16 at 5:48 am
Posted on 9/7/16 at 7:39 am to CAD703X
Why not sell the house?
Posted on 9/7/16 at 7:57 am to CAD703X
Just curious, what's the current rate and where is he at in repayment? Also, what's the value of the home?
It may be easier and cleaner for you to just buy the house, you rent it out and he can have some/all of the profits. Also make him the benefactor of the house. Idk, it's getting a little complicated, but if the rate is like 7% or something it would be worth it.
Consigning is a mess and may not even be a help.
ETA: If the rate is decent, just help him by paying the note perhaps.
It may be easier and cleaner for you to just buy the house, you rent it out and he can have some/all of the profits. Also make him the benefactor of the house. Idk, it's getting a little complicated, but if the rate is like 7% or something it would be worth it.
Consigning is a mess and may not even be a help.
ETA: If the rate is decent, just help him by paying the note perhaps.
This post was edited on 9/7/16 at 8:01 am
Posted on 9/7/16 at 2:39 pm to CAD703X
quote:
He has no income and I can easily afford the mortgage so I was wondering if I could use only my financials to secure the loan?
What do I need to look out for?
who you put on the deed.
terms of will.
how your contributions will turn into equity.
consider these scenarios
say you put in $XXXK. YOU die. your heirs should not get to make him sell to make your heirs whole. they get their part when he dies or sells, not before.
what happens if you die, and he can't make payments. what recourse do your heirs have so he does not lose the house?
Posted on 9/8/16 at 6:36 am to CAD703X
80% of co signed loans fall back on the co signor, IF you can do this and consider it a gift without any remorse, hurt feelings etc then help but be prepared for this to not end well
Quitting the job to help dad is where you lost me. Why not work harder and hire help to stay with him
The worst deals are always family and friends.
Quitting the job to help dad is where you lost me. Why not work harder and hire help to stay with him
The worst deals are always family and friends.
Posted on 9/8/16 at 12:13 pm to CAD703X
what you are trying to do is the hardest type of loan possible. The only program that allows for an unoccupied co-borrower is FHA. Also if our brother claimed the rental income on his tax returns then the property is an investment property and cannot have a co-signer on a conventional loan. I hate to say it but your brother is probably stuck with that mortgage until he returns to work.
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