Are there any significant negative effects of having a co-signer on your mortgage?

I am a 23 year old first time home buyer with a steady job/income, very good credit, and my only debt is student loans. The property I am interested in buying is slightly “out” of my price range. The offer I want to make will put my debt:income ratio at 53% and no lender will approve anything over 50%. In 3 months I know I will be getting a $ 10K raise which will put my debt:income at a very comfortable 43%. Problem is the property is a short sale and very competitively priced; it will not be available come November. My father is considering co-singing with me — will this hurt either of our credit or have any other negative side effects? After I get my raise, will I be able to relieve him of his co-singer commitment?
My November raise was written into my acceptance letter; it WILL happen.

Just because my debt:ratio is 53% doesn’t mean I can’t afford the property. It is well within my budget as I am very responsible with money, the bank just needs to cover their butt for other less finanacially sound clients.

Would being a co-signer have any significant impact on his credit is what I want to know.

He’s a very smart business man and would not invest/help me with this property if he knew I couldn’t handle it; he is in teh real estate business .. I am just trying to do the research for our options as he is very busy.


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