Wanted to help my friend in getting mortgage loan for $240k by adding my name as co applicant. My co
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I trust my friend. I wanted to help him by adding my name as co applicant since my friend has bad credit score and I have good credit score. The advantages for him: 1) he will get lower interest 2) he need not pay property insurance. The insurance is waived off if credit score is good or 20% down payment. He is making 5% as down payment.
1)I have plan to buy home for myself but I am entitled to get loan for only $250k.
a) If I add my name as co applicant in my friends loan, will I have problem in securing loan for my home since I am already in 250k loan.
b) I heard there is tax rebate for the first mortage loan and subsequent mortage loan is treated as investment property. And the second loan wont qualify for tax rebate. Is this true?
c) what if my friend refinances his loan in 6 months and then I apply my mortgage loan. Will I have any problem in getting my loan and my tax rebate(technically this is my 2nd mortgage loan).
Wanted to help my friend in getting mortgage loan for $240k by adding my name as co applicant. My concerns..?To answer your questions.
A. Yes because of the debt incurred on the first mortgage you would have to budget for both payments.
B. Yes it's true.
C. Because it will be the second mortgage you will not qualify for the rebate.
I know you did not ask for opinions but to put it simply, this is a seriously bad idea on several levels.
Wanted to help my friend in getting mortgage loan for $240k by adding my name as co applicant. My concerns..?More Related Questions and Answers ...
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