My college student has no income. Wants to buy a home that we will co-sign. Would she be eligible for the credit?

Asked by Clarissa Wilcox, 95834 Wed Apr 21, 2010

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Vinh Hoang, Agent, Sacramento, CA
Wed Oct 3, 2012
There is no benefit of having your son/daugher on the loan. He/she has no income. He/she might complicates the processing of the loan. If you meet all of the criteria, it is best that you should be the sole purchasers/borrowers for the next property.

Good luck
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Anna Boyd, Agent, El Dorado Hills, CA
Sat May 29, 2010
May want to check on the CA first time homebuyer credit. I hear the funds are drying up quickly and may run out by mid June!

There's a certain amount of money the state of CA set aside for this credit and once that amount is reached - it's gone.
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Susan Neal, , Fair Oaks, CA
Thu May 6, 2010
Clearly the federal tax credit has expired, but our state has a slightly different kind of tax credit, which is about $10,000 payable over three years. The buyer must be a first-timer and must live in the home. Unfortunately for your situation, in order to get the credit, all persons on title must be first time homebuyers (no home in their name for at least three years), so if you own your current home you could not be on title on her home if she wants to get the credit.

And if you are not on title, many lenders will not accept your cosigning. The reason for this is that you personally would have little to lose if you didn't make the payments, while someone who lives in the home has more to lose and it makes the loan a bit more secure. Sit down with a reputable lender and review their requirements to see if it is feasible. I admire your wanting you help your child get a head start in homeownership, but it may be very difficult to also get the tax credit.

Good luck to you!
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Mireya (Mary)…, , Sacramento, CA
Thu Apr 22, 2010
Hi Clarissa,

lenders have several qualifying factors that a buyer must meet to get a loan. Some of the factor are job stability, income ratios, credit scores, etc. If the buyer doesn't qualify, some loan programs and depending on the particulars, may have the option to have a co-signer/co-borrower. I'm not an accountant or lender and refer you to talk with them, but in my experience this buyer would not meet most of the qualifying factors and if you enter the process and qualify, it would make you the buyer/borrower . . . which means you're buying the house. If need help with lender information please let me know. Best to you!
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Debra (Debbi…, Agent, Livingston, NJ
Wed Apr 21, 2010
Clarissa - to answer your specific question.....if a co-signer is NOT on the deed, the person on the deed might qualify for the first time buyer's credit....assuming they meet the other requirements, and it's their principal residence.

I suggest you first speak to a mortgage broker......and an accountant...... because in essence, YOU will be buying her a home. Make sure there aren't any tax consequences.

Truthfully, with no income, I don't see how she can even be part of the mortgage process...........check it out.
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Laura Reilly, , Shasta County, CA
Wed Apr 21, 2010
Not her alone, but a lender should be able to work with the both of you and establish what both of you can qualify for together, and the lender might recommend you purchase the home alone inorder to qualify. If you need help locating a trusted lender to talk with please let me know.

Laura Reilly- Foreclosure “INVEST”igator USA Realtor dre 01760446
“I have a problem with too much money. I can't reinvest it fast enough” Robert Kiyosaki
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