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How Your Parents Can Help With Your Mortgage

by eBridge author

Some mortgage lenders allow parents to help their children qualify for mortgages by co-signing. If you are hoping for a parent to co-sign, ask lenders about their practices for co-signers up front.

Ray Rodriguez, regional mortgage sales manager for TD Bank in Cherry Hill, N.J., said that his bank allows parents to co-sign because it makes the loan more secure. A co-signer’s credit score can also influence some lender’s rate offerings to you.

Another option is to have parents give a gift to use for the down payment and lower the loan amount. Lenders will still often require documentation of that gift, both in terms of letters from a parent, and bank account documentation from both parent and child.

Ask your chosen lender what method of assistance might best work for them and you.