is it possible to be a guarantor for part of a mortgage only and not the full amount?

Question

are there any mortgage products that will allow my brother to purchase a property where he can afford the mortgage payments but which requires someone to boost his spending power? i would take on the guarantee of the difference between what he can afford from income and the total cost

Answer 1

I believe it is legally possible, but the bank may not go for it.

Be VERY careful in drafting any such guarantee. If there's a shortfall, there will be tremendous temptation to find any loophole making you liable for everything.

Good luck.

Answer 2

No. Regardless of the amount of interest you own in the property, or if you are going on the deed to help someone qualify for the loan, a lender will not allow you to be responsible for a certain amount. In fact, most loan documents will have you sign an item advising you that you are equally responsible for paying the mortgage, and will share the consequences should the loan go into default.

It's something I've seen over and over again, the worst case being the loan goes into default, the primary borrower doesn't care or skips town, and the co-borrower is left holding the bag. If you decide to co-sign for your brother, make sure both of you are clear and what will happen if the loan defaults.

Answer 3

I may be wrong. But, for a residential mortgage, being a guarantor may be the same as being a co-signer. I know for commercial buildings you can actually have guarantor, but, probably not for residential. What you can do is to have your brother apply for traditional mortgage for the amount he can afford (80% or less). And apply for home equity loan for the remainder. You'll be the co-signer for the home equity loan. I don't think it's possible for you to guarantee or co-sign a portion of the loan. Be aware that if you do that, it will show up on your credit.

Answer 4

If I understand your question correctly you are willing to guarantee a portion of a loan balance. This is theoretically possible but almost unheard of in the home mortgage business.

It is not uncommon in business banking for a company to borrow, for example, $1 million with a limited guarantee of $500,000 from the business owner.

Sorry to say, but I doubt you will find a lender willing to do this on a home mortgage.

Answer 5

As a guarantor you would be liable for the entire sum, not just part of the loan. Your credit history would have to be verified and a notice of loan placed there which could impact your ability to borrow money for yourself. I would weight this decision very carefully. Maybe it would be best if your brother purchased something that he wouldn't need a cosigner on.

Answer 6

at the beginning it is not important if the section-timer/finished-timer is male or lady. Secondly i assume it relies upon on the activity. some jobs require an entire-time member of team. yet others i won't be in a position to truly see any justification for paying somebody much less because of the fact they're section-time, in the event that they're the two qualified and experienced. i think one argument is that greater section-timers could be required to fill the submit of one finished-timer, which will strengthen administration expenses ... yet often section-time jobs exist because of the fact an entire-time individual isn't mandatory, wherein case i do no longer see why they could be paid much less.

Answer 7

yes this is possible, being a mortgage advisor I can confirm you could guarantee the top up amount. Only a few mortgage lenders allow this, if you would like to know more information please feel free to email me on [e-mail]

Answer 8

No you either guarantee or you don't