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324 votes
Accepted

My friend wants to put my name down for a house he's buying. What risks would I be taking?

That "something" you are signing means you are liable for the mortgage payments - yes, all of them - if he can't or won't pay at any point. The limit on what the bank will lend him based on ...
Vicky's user avatar
  • 24k
185 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

What are the risks, if any The risks are exemplified by the outcomes presented on this website, including: What can I do when the co-signer hasn't paid anything on the house in 7 years and now ...
RedGrittyBrick's user avatar
54 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

Wrong way round. Transitional arrangements are non-binding guidelines that the lenders can observe if they choose to. The borrower - like your friend - doesn't get to choose whether to use them or ...
gef05's user avatar
  • 6,981
39 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

You should only loan money to friends or relatives if you are fully accepting the possibility of never ever getting that money back. And in this situation it can happen that you will be forced to ...
vsz's user avatar
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30 votes
Accepted

Applying for FHA mortgage when living together but only one will be on the mortgage, no savings

Has she talked to a banker? That would be a great place to start. Please understand that this is a hot mess in the making and as her friend, you should help her navigate through it. It is better ...
Pete B.'s user avatar
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23 votes

Does Bank Manager's discretion still exist in Mortgage Lending

It is important to differentiate between corporate and governmental policies. It is unlikely that the governmental policies are that draconian. However, it is plausible that corporate policies are ...
Pete B.'s user avatar
  • 76.7k
16 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

Something else to consider, even if your friend is on the up and up and never misses a payment: Until the house is paid off, any time you apply for credit banks will count the mortgage payment on ...
Dan Is Fiddling By Firelight's user avatar
16 votes
Accepted

Is 2 years of recent continuous employment required to get a mortgage?

2 years of continuous work history isn't a hard and fast requirement. It's highly recommended, but other factors can override a lack of work history. 6 months might be a little tough to work around ...
Stan H's user avatar
  • 7,551
15 votes
Accepted

Credit advice in preparation for buying a house a year from now?

In my opinion you don't need to do much if anything differently. Keep on top of your payments and your credit score will improve over time (but is already quite good). If your cards have relatively ...
Hart CO's user avatar
  • 70.5k
12 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

Short answer: don't do it. Unless you know something that the bank doesn't, it's safe to assume that banks are a lot better at assessing risk than you are. If they think he can't afford it, odds are ...
EJoshuaS - Stand with Ukraine's user avatar
10 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

Both of you sit down with a lawyer who practices in real estate and foreclosures, and hash out every single possibility of what could conceivably go wrong, with nothing out of bounds. Come up with a ...
Harper - Reinstate Monica's user avatar
10 votes

Credit advice in preparation for buying a house a year from now?

...my friend says they were told they'd have been approved if "I had a third line of credit at least a year old." This is called a "Tradeline Overlay". There are a normal set of rules that must be ...
TTT's user avatar
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10 votes

Should I avoid reporting expenses on my tax return in order to have a higher income for getting a mortgage?

What should I do, in regards to filing taxes, to maximize my ability to get a mortgage? I would suggest that you not try to maximize your ability to get a mortgage and certainly not try to pay more ...
T. M.'s user avatar
  • 1,523
8 votes

Pay or not pay charged-off accounts for mortgage qualification

Your post has some assumptions that are not, or may not be true. For one the assumption is that you have to wait 7 years after you settle your debts to buy a home. That is not the case. For some ...
Pete B.'s user avatar
  • 76.7k
8 votes

Lender asking why I'm moving to a new state

Banks are obligated to assess your financial viability (multiple properties, even without mortgages are a large financial burden). Usually when people begin to collect multiple properties for the ...
Anthony McCloskey's user avatar
8 votes

why would a mortgage lender be asking someone a year away from retirement about their pre-retirement income?

Because the mortgage company doesn't care about your mother as an individual. They have a certain set of (probably automated) bureaucratic procedures that they go through for everyone that fits ...
jamesqf's user avatar
  • 11.1k
7 votes
Accepted

Would this inherited house have half-equity or simply a good deal?

Your cousin should be able to obtain a loan on favorable terms. The actual legal document that will be signed by your cousin's sibling is a quit claim deed. This is basically a form assigning sole ...
NL - Apologize to Monica's user avatar
7 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

This is not a full answer and I have no personal finance experience. But I have a personal story as I did this. As Vicky stated Another point: there are various schemes available to help first time ...
marsh's user avatar
  • 213
7 votes

Does Bank Manager's discretion still exist in Mortgage Lending

Pete B. has provided a practical answer. I'm answering separately to address an interesting point you brought up: (Alternatively ... is this all bound by regulation now, so that the concept is ...
dwizum's user avatar
  • 17k
6 votes
Accepted

Qualify for mortgage with projected property income?

Typically, no. Most lenders only count ~70% of rental income for loan qualification purposes, and only after you've had that rental income coming in for a couple years. The exceptions are typically ...
Hart CO's user avatar
  • 70.5k
6 votes
Accepted

Is there a financial product via which I can safely temporarily borrow against my home?

Yes, you want to look for a "bridging loan", see eg more info here: https://www.moneysupermarket.com/loans/bridging-loans-guide/ Bridging loans are designed to help people complete the purchase of ...
Vicky's user avatar
  • 24k
6 votes

First Time Home Buyer - How much will I be approved for on a loan for a house?

Visit a mortgage broker or go to a loan officer at a bank and they'll be more than happy to prequalify you for a loan. That will tell you what they estimate you can borrow and will be vastly more ...
Justin Cave's user avatar
  • 27.3k
5 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

The risk is that you will owe the bank the principal amount of the mortgage. Based on your question it would be foolish for you to sign. Anyone who describes a mortgage as "something" obviously has ...
Five Bagger's user avatar
  • 9,785
5 votes

Would this inherited house have half-equity or simply a good deal?

The reason a bank wants you to have 'equity' in your house (meaning, value that you hold free and clear, without anyone else being owed money for it) is that it makes it harder for you to ignore your ...
Grade 'Eh' Bacon's user avatar
5 votes

Credit limit increase unauthorized hard pull

I think this really depends upon the value you placed on your relationship with Elan; and, the value you place on your time. Calling the general line will likely yield no results as this is not ...
Pete B.'s user avatar
  • 76.7k
5 votes

Cost of appraisal/borrower rights

You can't shop around for the appraisal, but you do have a right to know what the appraisal costs before you go into the loan (before you take any step which would cost you money). That will be ...
Joe's user avatar
  • 35.8k
5 votes

Should I avoid reporting expenses on my tax return in order to have a higher income for getting a mortgage?

We can't tell you what to do, just the consequences. Setting aside the issue of fraud, which is serious in its own right, if you under-report your expenses: You over-estimate your disposable income. ...
Lawrence's user avatar
  • 9,392
5 votes
Accepted

Should I list all assets on my mortgage application?

Most of the time assets have nothing to do with a successful mortgage application. Only three things matter: debt-to-income ratio, income, and to a lesser extent credit score. Equity in the home ...
Pete B.'s user avatar
  • 76.7k
5 votes

Should I list all assets on my mortgage application?

How it was explained to be by a mortgage officer many years ago: You have to list all the liabilities. You have to list your assets that are used for your normal financial activities: savings and ...
mhoran_psprep's user avatar
5 votes

Does a 401(k) loan count as debt when calculating Debt-to-Income Ratio?

It does, because it is a regular payment. If a lender is wise, they will view a 401K loan as riskier than other types of debt. An auto loan or credit card does not require a balloon payment when you ...
Pete B.'s user avatar
  • 76.7k

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