Expert: Lori Frankfort - 2/15/2010

Question
Are co-signers ever used or accepted on a home mortgage loan?  We have great steady income, equity in a partnership business, but don't have great credit.  Never had a bankruptcy just slow pay.  Been current for about 6 months, very little debt, only 1 car loan about 10K, all credit cards are paid down to only about $25.00, but our score is still low.  Our parents are willing to help, they both own their home outright.

Answer
Absolutely, this happens all the time.  Call a mortgage broker for your options.  Make sure you discuss in detail with your parents what would happen in different scenarios, i.e. death, loss of job, foreclosure, selling at a profit, etc.

Best,
Lori Frankfort