If your kids are college-bound, you may want to think before co-signing on their student loans, especially if you’re considering moving. When you co-sign a student loan with your child, you may be impacting your ability to qualify for a home loan. Here’s how mortgage lenders view a co-signed student loan:
- A mortgage lender may consider a co-signed student loan as a monthly payment affecting your ability to qualify for a loan.
- You may qualify for a lower home loan amount due to co-signed student loan debt obligations.
- Even with perfect repayment history, a mortgage lender may decline your home loan application due to co-signed debt.
Before co-signing a student loan for your child, INHP recommends you consider other options, like grants, scholarships or Federal student loans.