Should I add my self to my sons loan if my credit is lower than his?
580 Credit Score, Low Debt to income, 50 years old, $78K annual income. My son is buying a vacation prop, and needs my income to get the approval, but my score is considered "poor". My son has 700 FICO. Is it a good idea to be on the loan with him- will my credit score increase him interest rate? Thank you! by Nevae2heaven825 from Baldwin Park, California. Mar 23rd 2018
Al Hensling (alhensling)
#438 ranked lender in California - 14 contributions
Lenders guidelines require that loans be priced based on the Lowest Borrowers Mid FICO Score. Your 580 score would adversely affect the cost of borrowing. In many cases a 580 score would not even be acceptable. The Short Answer is YES it would cost more with your score.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
With a score of 580, the only type of loan that you can qualify for is FHA, and FHA is only for primary residences.. So if your son is buying a vacation property, then even adding you wont help.. that being said,, if he is buying a primary residence, then he will be penalized by adding you to the loan.. the rate will be higher.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893
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