Have you got a friend otherwise relative that really needs assist being qualified having a home loan? Have they questioned one to cosign to their real estate loan? Cosigning into the an interest rate is a superb solution to help a pal or relative, nevertheless has of many dangers. Before cosigning into the a mortgage loan, you will understand how this could apply to both you and your credit. Cosigning into the a mortgage loan is different from co-credit. An excellent co-debtor are a person who as one assumes the loan debt and you can, essentially, lives in our home. A great cosigner is actually an individual who assumes on the debt of one’s real estate loan whether your primary debtor defaults towards the mortgage. The cosigner pledges the debt of the financing but will not live-in the home. Centered on FTC Issues getting People , if a loan non-payments, 75% out-of cosigners would have to spend the money for loan. Read more