Hi- Its not really called co sign these days. First, you dont know if she can qualify or not without running her info thru an automated underwriting program. It may be that the income reduction may or may not be an issue, if there has been consistent past income, and if it is now continuing. Think of a college grad without work history who can get a loan.
You also dont know if the short sale is on your report or not. You may be able to do a loan yourself if you have the funds needed to close unless FHA or who you are using objects to the short sale if it appears. In this case, you would be on the deed yourself, as well as the note. If you want her to be on the deed, for her feeling some control or whatever reason, she can be added to the deed without having to qualify for the loan. Or, you may be co borrowers, in which case you are both on the deed and note , both are qualified, and the lowest score of the two of you is used, in which case, if her score is too low, you could be penalized in interest rate.
So, all these possibilities should be looked at, and the pros and cons be listed.
If there would be a separation in the relationship in the future, its always way easier if the loan is only in one persons name.
I have been mortgage broker for 20 years and only do investment loans now. All of my owner occupants now are done by
Paul Moseng cell is 267-334-1555.
He is senior loan officer and has deep experience and will exactly understand your situation and find a solution for you. The company is Meridian Mortgage and there are some inner bank grant programs for closing cost assist in the amount of 2% of the sale price, or $5000 if you have not owned a property in the last 3 yrs. So, if your partner qualified, then she may be able to get the 5k grant. The seller can also assist in your closing costs if you negotiate it in your offer, up to 6% total, which includes other assists. Give him a call. They underwrite (analyze) the loans right in his office. He does lend in Jersey too.
I wish you success ,