I plan to help my mother refinance her mortgage to take someone out of the title leaving her as the only title owner. She cannot refinance by herself because her income does not satisfy the necessary debt to equity ratio. If I cosign for this loan and do not include myself on the title. Will this affect my debt to equity ratio and "First time Homeowner Status"? The answers I have heard so far are No, as long as I provide 12 months of proof that my mother is the one making the payments, and I am not on the Title. And the second answer I get is yes, my debt to equity ratio and "First Time Homeowner Status" will be affected regardless of title status. Any help on this matter would be greatly appreciated.
The loan shows on your credit. You will not be a first time owner, mom's house will be first time owner no matter if you are not on title. There may be other ways for mom to get a loan. Is she looking for cash or security a reverse might be an option to discuss and she won't need you to cosign...
Thank you for your response.
She is not looking to receive any cash from the house, she is simply looking to remove someone from the title of the house.
Fannie and Freddie have a couple new refinance programs for low income borrowers, the DTI can go up to 65%. There are some stipulations, but worth a look.
If it shows up on your Credit Report, it counts. Unless you got one heck of a letter of explanation to get it omitted. Good luck with that. If she is wanting to simply remove someone, why not do a quit claim deed? Depending on the state, but non-community states, removing someone from a title can be as easy as paying $200-400, filling out a form, and having it recorded at the local courthouse... Take a few days to get recorded and show up electronically.
Divorce and she is required to remove them by court order? Did you lookup is it a Fannie or a Freddie? Call me about some ideas to contact existing trustee and servicer