I had to approach my dad for a loan and he echoed the same concerns as many of you. He did give me a little security blanket, of course at repayment terms that are more than a bank, but it works.
Then he sends me an email.
"I have an idea to help your credit. What's your score?"
Of course my score isn't that great, I estimate it for me and he returns the email almost instantly.
"I was going to buy a house. Maybe WE should by the house, they have that tax credit you know."
A house? Are you nuts? I'm already barely surviving. A year ago I was making over $50K. Now after a layoff and two job switches since, I'm suffering in just under $30,000. That's a big difference. That's a "I used to pay off my credit cards, now I make a bit over minimum payments" difference. He told me to talk to a loan agent.
The loan agent said that the credit would apply with my dad as the co-signer; however, just I have to be the primary and live in the home at least three years. If we get a duplex, only 1/2 of the cost applies to the home. So I need to spend at least $160,000 on the home. Because of my credit, I would need a healthy down payment and the credit applies the purchase during the 2008 tax season - so I can't count on it as the down payment.
I'm meeting with my dad to hear what he says about it. I think its basically going to come down to him buying the house and my rent covering the mortgage, and of course, turning over the $8K at tax time.
And I know the provision is that the BF can't live there. Funny, same thing I told my brother ...
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So your solution to your personal problems is to go further into debt? Id ditch the deadbeat before I even consider trying this. Dead weight will drag you down.
Wait - before everyone gets on a high horse about debt vs no debt. Technically speaking my dad and I would both own the house and he would actually do most of the work, etc. Its more about improving my credit score while reducing my current rent AND taking advantage of the first time home buyers credit.
But - as it turns out my income isn't high enough and, at least at the last three places I've called, they don't take co-signers. I'm not about to go into this by myself.
So in the end my bubble has been popped.
You could have two people on the mortgage though. Do you trust your dad not to default?
People always think its silly but I have seen this work. No matter how small of loan you can get, take one out and pay it right back. You wouldn't believe what it can do to a credit score.
I also hope you don't look at people commenting as "on a high horse." Its easy to be perfect anonymously but my advice at least is given from a friend's perspective. The only repayment I expect is maybe a titty pic of you down the road. But you took down the comment about you having a "nice rack."
Keep trying MG, I like this idea, but time is really against you. Doesn't this rebate expire in Nov?
I love this mostly b/c it'll get you away from the BF. It's not exactly clear though if you would continue to date him, which I think I can safely say most people here are hoping yo won't.
Anywho, good luck.
Just remember that you told your brother that out of love and concern for his well being that he couldn't see on the "inside" of the situation...and that you're dad is doing the same for you.
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