6 Thoughts on If we co-sign on our sons new mortgage loan,what is our liability
  1. Reply
    June 11, 2012 at 3:11 am

    Totaly yours.
    The loan is on your credit and is your responsibility until paid.
    Even if he makes payments on time, the obligation is yours and appears on your credit report, and affects your future credit.

  2. Reply
    Jean Lynn
    June 11, 2012 at 3:20 am

    As long as he pays his bills you’re fine but if he doesn’t you will have to. I know there are all kinds of circumstances, but if there is any way possible way not to co-sign on a mortgage I would highly recommend it, unless you are in a position to make the payments if for some reason he can’t make them. I co-signed for cars and carried the insurance, but a house payment is a whole different thing. I helped with the down payment for my son, but I didn’t co-sign. He and his wife had to qualify on their own.

  3. Reply
    June 11, 2012 at 4:05 am

    If he doesn’t pay, you will assume the payments. So he had better be a good son. Nothing will happen until there is a default but somewhere in the financials there will be a notation of the co-signature.

  4. Reply
    June 11, 2012 at 4:57 am

    It is your house and your liability and on your credit report. If he defaults for any reason, the payments are yours, as well as the taxes, insurance, etc. Give your son a gift of money instead, up to $ 11,000 per year (I think) for each person in your family.

  5. Reply
    Ron G
    June 11, 2012 at 5:16 am

    Do not do this. DO NOT DO THIS. Do not do this. Am I being clear here. If he needs you to co-sign on a loan to get the house it means that he cannot afford the payments. He needs to be a big boy and get a job and save some money and then buy a house. You are doing him no favor here but just risking your financial future. If he does not make the payments they come after YOU. Forget about ratios. It is just like you are buying the house.

  6. Reply
    June 11, 2012 at 5:47 am

    It will show up on your credit report as an amount due. as the loan is also in your name thus reducing your credit to debt ratio

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