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So my wife and I are in search for our first home. We were thinking of taking advantage of those first time home buyer loans that allow you to put less than 20% down. However, my wife is currently a cosigner on her parent’s house with her sister. Does that disqualify her from being a “first time home buyer?”

3 Thoughts on Does being a cosigner disqualify you from being a first time home buyer?
  1. Reply
    Sharon T
    July 30, 2011 at 6:25 am

    Did your wife co-sign the loan or is she also a co-owner (on the deed)?

    Co-signing shouldn’t disqualify her but if she is on the deed she already owns an interest in a home.

    Find out the particulars and then call the lender you are interested in and ask a RE loan officer.

  2. Reply
    July 30, 2011 at 7:14 am

    The normal definition of a first time home buyer is one that has not owned a home in the last 3 years.

    If your wife signed the loan docs as a co-signer she had to sign the deed also. A lender will not simply allow a person to sign parts of the loan docs and not others. So she is on the deed of the property.

    When they run a credit check the mortgage broker will also find that a mortgage company will be listed there.

    Now if she can prove through canceled checks or bank statements from her mother that she has not paid anything on the mortgage for the last 2-3 years she might be able to use that as proof that she has no financial interest in her mother’s property, thus making her a 1st time home buyer and she can use her income to qualify for a potential house you guys purchase together.

    The best thing you can do is contact a local mortgage broker, complete a mortgage application so he can run a credit check and tell you what you are qualified to purchase and how much you will have to put down on a house.

    I hope this has been of some use to you,good luck.

    “FIGHT ON”

  3. Reply
    Ed Atun
    July 30, 2011 at 7:48 am

    no. If you can prove that the payments on her parents’ house are being made on time with no late fees you will get a loan. If you can show proof that the parents are paying entirely with their own money, it will be even better. Go ahead.

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