Basically these are the details to make this post short, because I need some help.
Mom- 650 credit score, makes around 45K a year. W2 employee. Dad - New credit, new to the United States. Credit is at 600. Makes 35K a year, W9 employee.
Me - 720 credit score, make 45K a year give or take, W2 employee.
This is the short story: We are located in Florida. my mom and dad are trying to buy a house through the FHA. However, the real state agent says that my dad wont be able to help because he is a independent contractor 1099, so his income is too volatile and not uniform, so banks wont like that (It is true, his income fluctuates from 350 to 500 weekly) He gets tips and stuff here and there which makes up his income. So, my parents decided to turn to me.
My parents debt: Mom - i speculate somewhere 50K between cars, credit cards, and medical bills. Dad - only like 2K in credit cards. Too new credit.
Spare me the advice of paying down debt, I know how it is.
Me - 0 dollars credit card debt. 27K student loans. 18K in car debt.
My mom and have previously co-signed 2 leased cars and both owe 9K for each so it shows in our credit score.
With that being said, this year, I have been lucky of not being laid off work, I moved back in with my parents for a house they rent. I barely spend time at home and help when I can. I spent this past 8 months fixing my credit and I jumped from 650 to 720 just paying debts and opening new credit cards.
My parents want a house, rent here in Florida is crazy high. Real estate agent said they cant use dad because of W9 like I said. So they asked me to be the cosigner for my mom since I have good credit and a W2.
My future plans in the next 2 years: Buy an used car and turn in my lease car. I want to buy an used car by lets say 6 months from now. I am not planning to move out, but it might happen if things with my girlfriend move further, but that wont happen for a year at least. I am not planning to do anything financially like buy a house or anything besides that. Buy a house for me is probably in like 4 or 5 years.
With that being said, the main question, what would cosign for a house do to my finances, my credit, or affect me or impede me to do? I want to help my family, but I don’t want to burden my own future.
Thank you reddit!
Edit 1: quick question, they said they would refinance in 2 years and get me off the hook of the house. Is this something they can do?
Submitted August 14, 2020 at 04:41PM by throwhouseaway2020 https://ift.tt/33ZaFDF
