Can my partent co-sign on a mortgage if hes retired?

Question

my dad retired last year and has been living off his savings accounts. He has owned his home free and clear for many years so never really had any other debts.He recieved his pension and decidied not to touch it till he can apply for social security. Hes willing to help us out with closing costs and to co-sign but the mortgage broker said he needs a steady source of income. Is this true. He has acess to his pension if he wants it he just chooses not to touch it. He can apply for ss in sept but we need a co-signer now.

Answer 1

It depends on your loan program and reason for a co signer.  Is the cosigner needed for poor credit or lack of credit?  If it is because you have c**p credit yourself, don't be surprised if you cant have a co signer.  Lenders are REALLY cracking down on loans.  If it is a situation where you are say 19 and have had credit for maybe only 6 months but you qualify in all other ways, yes there is a good chance for a non-occupying co-borrower.

Your best bet is to discuss your particular situation with your loan officer.

Answer 2

He will need a steady income, which he does not have, or he might be able to to put his house up as security but if he does and you default or can not pay for any reason he losses his home.

Answer 3

there are some great answers here and all are true, what you failed to inform us in your question was why you need a co-signor, it's hard to assist when the real truth is not revealed.  My guess is that your having an income issue since that's your focus.  Your dad is taking the correct route by doing what he is with the pension and social security, but it does not give him a source of income, but I do agree with the last poster as his assets could be enough to get this done for you so make sure the broker is doing all he can to get you into the program that best suits YOU, not his wallet, especially if he's charging you up front, the back end shouldn't matter too much.  This is your money and your future, make sure that is priority one, good luck

Answer 4

You need to understand that either you or your dad need to have a steady source of income. Having a co-signer that doesn't have an income makes difficult but not impossible. I mean he has money to put down. I've close deals like yours and I've been in the business long enough to know that a good broker knows and looks at every single program there is and some times the ones that aren't. If you have credit and your dad has the money I will see you as an eligible client. I wish I had more clients like you. Look for a different broker. Sometimes broker want to sign you up with programs that pay them more instead of looking for a program that may suite your needs.