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I am listed on my daughters mortgage as a co-signer. I am looking into purchasing a fixer-upper. What are my options. Do I need to put the other home solely in her name?

by abby.mart8324 from Altadena, California. Oct 2nd 2015 Reply


Fred Glick (FredGlick)
#19 ranked lender in Pennsylvania - 14 contributions

It all depends on qualifying ratios and what you are trying to do. You need to talk to a mortgage broker that will ask you all the pertinent questions to see what you can do.I am happy to help as I am licensed in CA to do mortgages. NMLS #133975 CalBRE#01507615Fred Glick310 741 7179

Oct 2nd 2015
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Jeff Phillips (JeffPhillips)
#678 ranked lender in California - 32 contributions

Hi Abby,No, please make sure that your daughter is making the mortgage payments through an account that is in her name (not yours). Usually with 12 months cancelled checks, showing your daughter is making the payment, lender will not count debt against you. There are some other things that you need to be aware of that will affect the type of loan that you will qualify for, like is the current loan FHA. If it is, then you may not be able to qualify for an FHA loan. I would be happy to help you navigate this.

Jeff Phillips
HPI Financial
(415) 867-6488

Oct 2nd 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,795 contributions

If your daughter has been paying the loan out of her own account (one you're not attached to), and she can prove she's paid the payment for the past 12 months or more, then the lender has the option to remove that payment from your ratios, which will make qualifying easier. This is of course you have meet all other eligibility requirements and you have sufficient income.. If you make enough income, then it's possible you still might qualify with your daughters payment in your ratio's.. If you want to know for sure, you should The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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 NMLS# 226347

Oct 3rd 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 533 contributions

As long as you can show your daughter is making the mortgage payments for the most recent 12 months then lenders will not count that mortgage payment against you. Not sure but you may live at an entirely different address and you should be able to prove this rather easily as well. I doubt your current loan is an FHA loan as FHA does not allow co-signers on loans.

Oct 5th 2015
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Larry Gray (lgray_312_247)
#5 ranked lender in California - 1,127 contributions

You likely took something from all these comments, and realize you can get proof of payments by your daughter for 12 months to enable the debt to be excluded in the DTI. It depends on the individual lender but many will allow for that. However, as Jeff Phillips pointed out, if, as often is the case, you were a borrower on yourdaughter's FHA loan, you may not be eligible to purchase with an FHA loan.FHA and Freddie mac conventional have long allowed for a non-occupying co-borrower.

Oct 6th 2015
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