mary_dorothy…, Home Buyer in South Pasadena, CA

I sold my home in a short sale last year. Can I co-sign on a loan for my daughter to purchase a home. We are looking in the South Pasadena, CA area.

Asked by mary_dorothy24, South Pasadena, CA Thu Feb 21, 2013

I have money for my retirement so I don't want to use that for a loan. My credit score is 719 and hers is 732. She is 22 and both of us have had good jobs for over 5 years.

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Hello Mary,

Typically in order to obtain a new Fannie Mae backed conforming loan, you must wait 2 years from the date your short sale closed. Unfortunately in this case you will not be able to co-sign for your Daughter at this point until 2 full years have elapsed. Here is some information for you in regards to short sale waiting times:

FHA has a three year wait period for borrowers who were in default at the time of the short sale (or pre-foreclosure sale). FHA tends to be a popular option as the minimum down payment is currently 3.5% and FHA is more forgiving with credit than Fannie or Freddie.

Fannie Mae has various wait periods depending on loan to value:
•2 years with a minimum 20% down payment
•4 years with a down payment of at least 10%
•7 years with standard down payment guidelines (varies depending on credit scores)

Freddie Mac has a 4 year waiting period.

I hope this helps and if you have any other questions please feel free to contact me directly.

Ryan Shimp
Prestige Realty & Investments
DRE #01864245
818-741-2935
0 votes Thank Flag Link Thu Mar 14, 2013
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