Cosigners on the Loan + Holding Title + Tax Implications
Hello and thanks for reading :)
I'm currently working on an investment out of state and been in communication with many lenders to find out about all my available options.
Although I have good credit, cash reserves and expected cashflow, my income itself the last 2 years has been spotty, so I'm not an ideal candidate for conforming/conventional loans. And so far the interest rate on any portfolio loans I have come across are a bit too high for my targets.
At the moment, the best strategy seems to be: having my parents cosign for the loan and go conventional for the low interest rate.
BUT I'd like to hold title alone, if possible. Some lenders tell me that my cosigner(s) would have to be on title, and taking them off title via quitclaim down the road would probably call the loan due.
So here are my questions:
- If they cosign, would they have to be on title? Is there a way around this? Could I quitclaim later without having the loan called due?
- If they are on title, would the income/expenses/tax deductions/write offs have to be included in their tax returns as well? I assume since i am financing and handling everything, I can just claim everything on my own and leave them out of it. Is that correct?-
Any other considerations here?
Thanks in advance!