Yes, you can cosign on a new mortgage even if you already have one of your own - as long as your income is sufficient to pay both mortgages if need-be.
Under the Underwriting Microscope
A co-signer to a house can buy another house if she shows the new lender that the co-signed loan is in good standing and unlikely to default, or, if she allows the lender to count the co-signed loan as her obligation.
FHA Loans. FHA loans are special types of government-backed loans that can allow you to buy a home with a lower credit score and as little as 3.5% down. If you want to get an FHA loan with a nonoccupant co-client (you can have a maximum of two), your co-client will need to meet a few basic criteria.
Can a family member cosign my mortgage? Yes. Lenders can often accept a guarantor's signature if the guarantor is in a good financial state. However, guarantors cosigning on a loan for a riskier borrower may be asked to put up collateral as well.
Typically, homeowners may not have more than one FHA loan at a time. ... Cosigners, however, may have more than one FHA loan if they cosign for another FHA borrower and do not occupy that property as their primary residence. A non-occupant cosigner may live in a home with an FHA loan and cosign for someone else.
The loan can hurt your credit score.
But your score can be hurt even if the primary borrower is diligent with payments. A high unpaid balance on a loan you co-signed can hurt your credit utilization ratio, which is the percentage of your available credit that's in use and is a major part of your credit score.
Your mortgage lender may recommend asking a parent or family member to co-sign the loan for you. FHA and traditional mortgage lenders allow co-signers to use their income and credit to secure the loan on your behalf. Co-signing the loan gets the keys in your hands sooner, but comes with many disadvantages.
The risks of being a co-signer
How does being a co-signer affect my credit score? Being a co-signer itself does not affect your credit score. Your score may, however, be negatively affected if the main account holder misses payments. ... You will owe more debt: Your debt could also increase since the consignee's debt will appear on your credit report.
If you own a home, you can make the decision to sell it at any time. That all changes, however, if you own the property along with someone else. If you share ownership with another person, neither of you can sell the property without permission from the other.
In some cases, you won't be able to negotiate or remove the co-signer from the lease. In that case, it's important to understand that the co-signer is only responsible for the length of the lease, which is usually one year.
In a strict sense, the answer is no. The fact that you are a cosigner in and of itself does not necessarily hurt your credit. However, even if the cosigned account is paid on time, the debt may affect your credit scores and revolving utilization, which could affect your ability to get a loan in the future.
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