Do you need a credit history to co-sign for a duplex?

Question

I'm a 20 year old male, I've had a 2 year contract with a phone company before, that's it. So you can imagine my credit history is pretty scarce. What I'm trying to do is get my own place with another couple but it's a duplex and requires me co-signing. Am I going to run into any trouble? Thanks.

Answer 1

You need credit enough to purchace a home in order to cosign for a home; and it looks like YOU need a cosigner.

Answer 2

They will run your credit, as you will be listed on the lease, sometimes lack of credit is not a bad thing, it just means that you haven't done a lot of financing, and do not use credit. What you shoul do is have an actual credit reporting company run your credit, (do not get one off the internet as they never come up accurate), and see what is there. Some people with limited credit have great scores because there is no bad payment history. Expalin the situation to those considering the application, and furnish them with all of the resources neede to verify your current employment and income. That should help. Good Luck!

Answer 3

Your not really co-signing, that is when you would take a second position on a loan in a weak credit situation, so in the case the first party doesn't pay the bank has another place to collect. What you are doing is entering into a partnership on the purchase of this property.

Answer 4

FNMA,FHLMC,FHA all have programs for no score borrowers. Using alternative credits will put you in a better place.

You May Use as Substitute Credit:
Phone Bills/Cell Phone
Rent History
Car Insurance,etc.

You will not be able to do an Automated Underwrite your file will need to be manuall underwritten.

Answer 5

It is all about your credit Score (FICO)

http://en.wikipedia.org/wiki/FICO

Whomever has low scores , will cause the % rate on the mortgage to go up .
Get your scores Before you do the apps , know your standing .
If the high scores have enough income , go with that and do the add on later .

If everyone has low scores or you need everyone to get the 'income' up to qualify , just be prepared for the higher rate .

good luck

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Answer 6

you will need a good credit history to be the co-signer usually