Would offer a cosigner a monthly payment - what do you think
My wife and I want to relocate to the Austin, Texas area and purchase a house. I went through the financing process but I need a cosigner to get the final approval. We have credit scores in the mid to upper 700s, all good credit, no late payments, no bankruptcies or default and plenty of assets. This property will be turned into an investment or flipped within 2 or 3 years. We intend to get involved with real estate investment in the area as well.
We are looking to offer to an investor (to be found) who would be a cosigner for the loan. We would be the owner of the property. The agreement we would like to offer to the cosigner is as follow:
We will pay $700 to the cosigner at closing.
We will pay $40/month to the cosigner until the loan is paid off.
There will be a lien (to protect cosigner) on the house in the amount of the down payment in 2nd position after the mortgage.
We (the buyer) will pay for the down payment, closing costs, the only requirement for the cosigner is the cosigning on the loan.
This agreement will be in writing crafted by our real estate lawyers. You are welcome to consult your own.
The property will be in a stable or growing area of the Austin metro, between $500,000 and $650,000, a 3 bedroom, 2 bath single family house.
I would probably need to protect myself so that the cosigner doesn't bail out at closing and I lose the deposit.
Anyone has done something similar to this?
Thank you in advance.