Husband Co-signed Mortgage With His Mom Before We Married. How Will This Affect Our Ability To Buy A Home?
My husband and I are in our late 20s, recently got married, and we are currently renting. Before we were married (like 2 years ago), he co-signed a ~$470K mortgage with his mom because she couldn’t qualify alone with her income. The dad couldn’t qualify either because of his credit (COVID affected his restaurant business). They also have a paid off rental townhouse, and the rental income helps cover the payments.
I knew about it when we were dating, but I was honestly too naive to look into the financial side since I didn’t understand mortgages. Now that we want to plan for our future, I’m realizing it may impact us.
He doesn’t make any of the mortgage payments, and some lenders told him they might exclude that loan from his DTI after 12 months of bank statements, but he originally used that address as his primary residence, so I don’t know how strict lenders are about that. I also learned I may not qualify as a first-time homebuyer anymore because he already used that status. I’ve never gotten a house before.
We both have good credit and no debt, but I’m worried this could limit us when trying to buy a home together or even take out a loan in the future.
Questions: 1. How realistic is it for a lender to exclude this mortgage from DTI if it was once his primary residence?
Am I truly disqualified from first-time homebuyer programs because my spouse already used it?
If his parents ever stopped paying and it affected his credit, how would that impact us when applying jointly?
Anything we should be doing now to protect ourselves?
Just looking for advice before speaking with a mortgage broker.
Oh! I also forgot to mention, he did try to refi and remove his name off the loan, but his mom was still not qualified. So unfortunately, that’s not an option.
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