Yes, I know I’m stupid. I thought it was love (I was very wrong).
My current fiancé and I want to build a house next year.
The student loans I co-signed currently sit at around $11k. I have an 800+ credit score, my fiancé has a 765. I can’t get off the co-sign unless my ex refinances (which he supposedly tried to but he just “got a house” with his new girl, which I’m not sure if that means rented or bought) and supposedly he’s had difficulty refinancing. I have no proof of him trying to refinance. Just word of mouth.
How much will the student loans impact getting a builder loan? I won’t have any other debt at that time of building the house. My fiancé has no debt either. No car loans. Thanks!
How much will it impact me? Co-signed ex’s student loans.
byu/callie12356 inRealEstate
Posted by callie12356
4 Comments
Offer them $1,000 to refinance. It’ll be amazing how fast it happens. This is a small amount and shouldn’t have an impact since the monthly payment is probably really low.
Have a contract written up to issue payment after it’s refinanced, not before. Better to finally have them gone from your life.
$11k of debt shouldn’t be that move your debt-to-income ratio too much, but it’s not nothing. The bigger risk is if he stops paying and tanks your sweet little credit score. Sadly, there’s nothing you can really do to force him to refinance that loan.
Why were the student loans not addressed in the divorce?
If you’ve cosigned on a loan, that loan counts against you in determining your debt payment to income rations needed to qualify for the loan. Just to pull random numbers out of the air. Let’s say your income is $5K month and the mortgage bank wants to see your total debt payments, including the new mortgage to be under 40% of that or $2,000. Let’s say that the mortgage payment will be $1,500 and you have credit card debt and car loan payments totalling another $400 so your total debt will be $1,900.
Since the $1,900 is under the $2,000 max they want to see you’d qualify if you hadn’t co-signed. But let’s say the student loan payments are $300. That $300 goes against you even though the ex is paying it. So your total becomes $2,200 (your $1,900 and the co-signed $300) and since that is over the $2,000 max you no longer qualify for the loan.