If my Dad cosigns for my student loan will it affect his ability to get a loan to refinance his house?
Asked by dj51234I need a cosigner for my student loan this semester which would probably be around $9,000 in January. My dad wants to refinance his house in April but wants to cosign for me. Will he be able to? He has good credit and it is still going to be in my name.
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Answered by knight01
The correct answer is Yes and No. Being a co-signor on your student loan will be a debt counted against him. However, presuming your student loan will have a deferment of payment while you are in school and that you have at least 2 years of school remaining. (meaning the payment will not be due until 30 months from now, 24 months of school + 6 month grace period = 30 months) The lender can waive that debt in the calculation of income. He will need to provide proof of the deferment, so keep all of your student loan paperwork available for him. Also, it may not be an issue, depending on his credit score. If his score is high enough, 750 or better, and the equity in the home is strong enough, 75% or less loan to value, it probably won't matter as he'll get a 'rapid approval' through automated underwriting.
The correct answer is Yes and No. Being a co-signor on your student loan will be a debt counted against him. However, presuming your student loan will have a deferment of payment while you are in school and that you have at least 2 years of school remaining. (meaning the payment will not be due until 30 months from now, 24 months of school + 6 month grace period = 30 months) The lender can waive that debt in the calculation of income. He will need to provide proof of the deferment, so keep all of your student loan paperwork available for him. Also, it may not be an issue, depending on his credit score. If his score is high enough, 750 or better, and the equity in the home is strong enough, 75% or less loan to value, it probably won't matter as he'll get a 'rapid approval' through automated underwriting.
