I'm 24 and I want to co-sign for my mothers mortgage that she's getting pre-approved for as she looks for houses. She's been renting for the past 15 years since my father died and lives with my younger brother still. She makes about 50k, I make about 60k, younger brother doesn't work yet. We both have 730+ credit scores but she wants to get approved for a higher mortgage, which is why I want to co-sign.
I'm currently renting as I work full time and pay about 900$ a month. My mother doesn't want help to pay the mortgage and is planning on leaving everything to her three kids when she passes. At first co-signing was because I had a higher credit score but hers has risen from 550-730+ over the past however-many years. Now the idea is just so she can get a mortgage for a regular 3 bedroom house in this expensive county we live in.
My mother is a mortgage broker so I trust her judgement completely. She feels bad about asking for my help but I'm very willing. Are there any downsides to this that I should know about? She worries it will be harder for me to get a house in the near future, but I'm 24 and don't plan on buying anytime soon. She also wants to say I'll live with her so I get a tax break as a first time home buyer. I'd prefer not to live with her but am considering it. I also don't want to say I'll live there if I'm not going to.
Any insight would be appreciated. The rate we're looking at is ~5% but she can also have an old friend buy the house for her outright and give her a 8-10% rate. She is considering that too so I wouldn't need to be involved.
tl;dr my mother is buying a house, we both want me to co-sign to get a higher mortgage and better rate, what are the pros and cons to that?
Thanks!
Submitted August 04, 2017 at 12:59PM by Stormwater_Monk http://ift.tt/2vwXDft
