My boyfriend and I live together in a condo which he owns. The condo is worth about twice what he owes on it.
Before we got together he accrued a lot of debt, to the tune of about $120,000. His debt to income ratio was too bad to refinance the condo despite the fact that it would have instantly fixed his debt to income ratio. This put him in a bad situation and he decided to work with a startup called Point.
The Point “loan” is complicated to explain but to put it succinctly we have to pay it back in full plus a percentage difference in equity before 10 years are up or we have to sell the condo. There is a cap on how much they can make, but the cap becomes irrelevant after the first two years.
Ok, so the goal is to pay this back before two years is up. My boyfriend’s credit is now great (750 I think). The debt to income ratio was the only thing holding it back. The problem is he’s lost his job and I would like him to go back to school full-time.
My credit is excellent (800+) and I have a good amount of assets. I have no debt to speak of.
I see him and I getting married. We’ve been extremely close friends for 3.5 years but have only been dating for 1.5 of those. In the future I see this home as one that we will own together, but it’s too early to get married and I’d rather not marry for financial reasons.
He has not asked me to co-sign on the loan but I brought it up with him. He’s willing to make other contracts which could lessen my liability if that’s possible. If we marry and it becomes our home then I could be saving us upwards of $500,000 in the worst case scenario.
So the question is, should I co-sign on a refinance loan to pay back this Point loan? If so, are there contracts that can help protect me? Is there any way for me to become more of an owner of the property?
Submitted May 14, 2018 at 03:13PM by GlitterInfection https://ift.tt/2rGD6S8
