Or will it be a hinderance when i want to buy my own property
2007-07-29 11:08:02 · 17 answers · asked by mekha6 1 in Business & Finance ➔ Renting & Real Estate
NO NO NO NO NO. Did I say NO before? Unless your folks were like mine and never had a credit card or mortgage (hence, no credit rating), there's no way in heck you should allow this!
On the other hand, my folks, with no credit rating, always had the funds in hand to buy anything they wanted. Do yours?
NEVER let anyone you don't have ABSOLUTELY COMPLETE CONFIDENCE in use your name or credit.
If you had complete confidence in your parents, you wouldn't be looking to Yahoo for answers. Just tell them that you talked to your banker and he said the loan can't be done.
2007-07-29 11:16:06 · answer #1 · answered by Anonymous · 2⤊ 1⤋
Them using your name to buy this house can be agreat thing for you and your credit as long as they make the payments on time.
It can get in the way of buying another property unless you go to the right mortgage person. If you go to someone that has been in the business a long time then they probably know what they are doing and can work around a house being on your credit report.
Now I would agree with most of what everyone else is sayign with the exception that we dont know your situation. Think about the situation first. If you are about to go off to college and this is a college home then go for it, it can only help.
2007-07-29 20:38:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not a good idea. They basically have no responsibility to pay if they do this. If they make late payments or don't pay at all, it will be on your credit. BUT if they do well, it will actually HELP you in future. It's your call - if they have good credit/good payment history then why do they have to use your name? They must have done something in the past (near or far) to hinder them from doing it now. That may make your mind up for you. They might trip up on your credit, and you are left with it. It will show whatever happened with the house - late, on time, no payment.
2007-07-29 18:20:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
This is a "straw buy" and it is 100% illegal. A straw purchase is any purchase where the buyer is not eligible to own the purchased item according to the law and therefore purchases the item through a proxy buyer. Although it usually refers to the purchase of illegal firearms, the term can refer to almost anything bought or sold illegally.
Do you realized they want to use your name and credit because they do not qualify to buy the house on their own (this should be your first main clue that you shouldn't do this). If they defaut on the house YOU are 100% responivle for the payments on the house...it will be your credit that gets dragged down. If they don't pay the property taxes you are responsible...if they make a late payment 3 times a year, your credit takes the hit.
2007-07-29 18:34:28 · answer #4 · answered by Anonymous · 0⤊ 1⤋
It could do both, If your parents have had bad credit or credit problems in the past and they need your credit to purchase property now, you could be liable for that loan until it is finished. And as long as that loan is not paid off, you may not qualify for a loan to purchase your own home. Think about it before you leap. Talk with a financial advisor first, Like a real estate broker or a bank loan officer that doesn't cost a penny to get that info and you may save yourself a lot of grief! good luck
2007-07-29 18:16:07 · answer #5 · answered by katie d 6 · 0⤊ 0⤋
Why can't they use their own names? Is the house for them? Do they want to use you as the primary borrower or a co-buyer? - It will affect your credit, yes. If they are ever late in payments, it could drastically hurt your credit and you might not be able to get your own mortgage or it will cost more and possibly require a larger down payment. I would say don't do it, but don't have all the details of the proposal
2007-07-29 18:15:54 · answer #6 · answered by Anonymous · 0⤊ 0⤋
When you want to buy your own place, they will look at your credit report to determine if you can afford the payment or not.
If your total monthly bills will exceed 50% of your income, your choices will be very limited. They will count the payment amount of your parents' house if it is in your name.
If your parents have any problems making payments, it will reflect on you and hurt your chances for buying your own place.
2007-07-29 18:28:08 · answer #7 · answered by WJVV 4 · 0⤊ 0⤋
Don't allow it. You will have problems in the future if you try to buy a house and your name is on another mortgage. You won't likely qualify for both mortgages so you will be out of luck. If your parents don't pay on time, your credit will also be damaged.
2007-07-29 18:23:48 · answer #8 · answered by lt 4 · 0⤊ 1⤋
the answer is yes to both questions
if they do not make the payments on a timely basis or the property taxes are not paid or it defaults into foreclosure ---it will be reflected on you!
will it hinder you when you want to purchase a home...it may.
think this over carefully...
good luck
2007-07-29 18:13:08 · answer #9 · answered by Blue October 6 · 1⤊ 0⤋
it will only damage your credit if they fall through on payments.when you go to buy your own house it may even be helpful if they have built up equity and a good payment history.you can explain the situation with your agent they may suggest having your parents house as rental property and have their mortgage money listed as income for you.
2007-07-29 18:16:48 · answer #10 · answered by RIE 1 · 1⤊ 1⤋