Borrowing someone else's credit (tell me what I need to know!)
Hey everyone!
My wife and I want to get into a place that we can house hack a bit on the north side of Seattle. The challenge is that the market is hot, our income isn't huge, and duplexes are pricey.
We have a few friends with great credit and income owe us some favors.
It seems like if we can have someone cosign to borrow against their credit, we could get into a duplex where 2/3 of the mortgage would be covered by the other unit.
What do I need to know about cosigning or borrowing someone's credit?
Thanks for the help!
-Dan
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
Sometimes barriers to entry are a blessing in disguise. Overpaying for a property is never a good idea. Wanna lose a friend quick? Have them co-sign.
Not saying you shouldn't get into RE, just don't over-pay. Think worst-case scenario. It's 2008 all over again. Prices are falling, vacancies are up and your co-signor was just layed off by Boeing because a gov't contract was yanked. They need paid off and your tenant neighbor stopped paying rent. You bought at an extremely high price and have no options. What do you do @Dan Cumberland ?