Can I Get Someone to Cosign a Mortgage & Then Take Their Name Off Later?

how to get cosigner off mortgage

A co-signer is sometimes the key to getting home loan approval.

The Basics

A borrower with no credit history or minimal history may require the help of a co-signer to boost his home loan application. Having a co-signer with strong credit and the financial assets to repay the debt if you no longer can may compensate for your lack of credit. In general, a borrower must meet the lender's minimum standards for eligibility, including employment, income and no derogatory credit. A common scenario is a parent who co-signs for his child, who is a first-time home buyer.

Removal Reasons

Although a co-signer is usually financially well-established and demonstrates to the lender that he can afford the additional payment, he usually doesn't take on the responsibility intent on repaying the loan one day. A co-signer may want to take his name

off of the loan as soon as possible to minimize his risk. A 30-day or more late payment reflects on the co-signer's credit report and diminishes his score. The housing payment also affects a co-signer's ability to borrow because another lender may count it as part of his monthly debts.

Refinance

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    Source: homeguides.sfgate.com

    Category: Credit

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