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how does a cosigner affect a mortgage downpayment

by lyonswood89566 from Milwaukee, Wisconsin. Jun 19th 2015 Reply


Ritchie Baumann (Ritchie)
#28 ranked lender in Wisconsin - 28 contributions

Down payments amounts required stay the same when a co-signer is involved. A co-signer helps you qualify for the loan when calculating debt to income ratios.Ritchie in Brookfield Ritchie@trustprovidence.com

Jun 19th 2015
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David R Youngs - Assistant Vice President (DavidRYoungs)
#66 ranked lender in Minnesota - 47 contributions

That's a good question. Unlike a vehicle loan or a credit card application, where just having another person on the loan could create an approval, it does work differently for mortgage loans.The person that co-signs with you on a mortgage loan may or may not actually help you get an approval. For example, mortgage loans are based on the LOWEST person's credit score. So if say you have a 740 score and the person co-signing is at 680, the loan's interest rate and qualifying requirements would be based on the 680 score, NOT your higher 740 score.Where a co-signer can really help is in the case of either income or money saved for a down payment, or just "reserve" funds set aside. Assuming both of you would have high credit, so long as the person co-signing has enough income to show that they can support their own expenses PLUS your expenses (combined with your own income also of course), they could help you qualify for a higher loan amount, or more easily for the loan you're trying to get.Also if you are short money saved that is needed, they could assist with this, which sometimes can make or break an approval.All that said, there are varying requirements depending on the financing type you're trying to use and each of them have specific underwriting requirements. That's where having a knowledgeable mortgage professional as a resource really can help you in your planning and decisions.I hope this answers your question and please feel free to reach out to me anytime if you have any further questions or want to discuss things in more detail. Thanks!David Youngs - Senior Loan Consultant NMLS #328679 - Toll Free 866-680-2840 Ext 12 or Email - dyoungs@progressivels.com

Jun 19th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

The down payment can come from one or all of the borrowers associated with a mortgage.. so it really does not matter.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jun 19th 2015
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Mandy Fritsche (mortgage.mandy)
#35 ranked lender in Wisconsin - 20 contributions

It depends on what type of loan you are doing and what type of property you want to purchase. Example: FHA loan on a 2 unit property would need 15% down payment with a co-signer but only 3.5% down paymnet on a single family home with a co-signer. There are conventional co-sign options as well with loan down payment. Please call me to discuss your special scenario. Sincerely, Mandy Fritsche, Prospect Mortgage, Mortgage Loan Officer, NMLS# 557211262-327-5700 Cell, 877-868-9198 Fax, mandy.fritsche@prospectmtg.comwww.MyProspectMortgage.com/mfritsche

Jun 19th 2015
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