Buying A First Home With Mom Could Be A Bad Idea
(Windsor, North Carolina, USA)
Ask Kate if buying a first home with mom could be a bad idea: I want to buy a house for myself with my son as my co-borrower because I can't qualify at the present time, no income.
My son is eligible for VA financing because he is a partially disabled veteran and wants to eventually buy his own house.
If he becomes my co-borrower, will that prevent him from buying a house for himself, using his VA home loan eligibility?
Kate Answers: Buying A First Home With Mom Could Be A Bad Idea
Is your son's income substantial enough to qualify for two mortgages?
If your son co-borrows with you to bolster your income so you can buy a house, he is just as responsible to the mortgage company as you for your monthly house payments.
So when the time comes to buy his own home, he should prepare himself for a worst case scenario - to be asked to qualify for his house payment and
100 percent of yours, even if you pay the entire amount.
Buying A First Home And Qualifying For Two Mortgages
If this concerns the two of you, even in the slightest, do more than bite your fingernails. Find the most reliable VA approved mortgage lender in town and make an appointment to discuss the scenario.
To get an adequate answer, expect to supply W2s, bank statements, pay stubs and a copy of his credit report. The more information your son provides, the more dependable the outcome.
VA Mortgage Guidelines For Buying A House
Let's say the VA approved mortgage lender gives your son a thumb's up. He thinks your son is capable of carrying your mortgage payment and his own VA home loan.
Both you and your son should keep in mind this is not a guarantee. That's because lending guidelines can turn on a dime. So I have two cautions for your son...
- It is possible if you co-borrow with your mother, buying a first home for yourself could be harder. You might not qualify at all unless your mom would refinance her mortgage or sell her home.
- If for any reason your mom's monthly house payments turned unaffordable for her, you would be on the hook for them. In the case of late payments, your credit history could be adversely affected.
Buying A House With Family Members
Alyce, I hope you understand in light of these cautions that I am not downplaying family members buying a house together. I have four daughters and we practice helping each other in our family.
So I applaud your son's effort to help his mother! And I think you are a good mom to ask this question before your son commits to your mortgage.
Comment and Link To This Page
Alyce, one more thing. Is this page is helpful to you? I'd like to hear back from you. Everyone can Comment on Buying A First Home With Mom Could Be A Bad Idea
. Or Ask Kate another question here
Would you like to send a link to this page for your friends and family to see? Or link to it from your website or blog?
Just cut and paste http://www.get-your-best-mortgage-rate.com/buying-a-first-home-with-mom-could-be-a-bad-idea.html
into your email, website or blog.
Have You Seen The Most Recent Ask Kate Answers
Back to Home Buyer Stories and Advice from Buying A First Home With Mom Could Be A Bad Idea
Home to Best Mortgage Rate - Low Mortgage Payments from Buying A First Home With Mom Could Be A Bad Idea
Tell A Friend
Get Your Best Mortgage Rate depends on your word of mouth. Spread the word about Buying A First Home With Mom Could Be A Bad Idea
using these convenient buttons.
The information you obtain at this site is not, nor is it intended to be, a substitute for personalized professional advice. All numbers are estimated and are for illustrative purposes. Rates, loan programs, and guidelines are published for convenience only, vary with no advance warning, are not guaranteed, and should not be relied upon. You are encouraged to consult a lender for a current rate quote and seek advice from qualified professionals, for example, attorneys, accountants, financial planners, housing counselors, mortgage lenders, and/or real estate agents, regarding your individual situation. Comments and opinions found here are not necessarily those of Get-Your-Best-Mortgage-Rate.com and its owners.