Parents are buying a $665k apartment and want to “put it in my brother and I’s name”. We’re both 23 with decent salaries and student loans that we already pay for. This is definitely a bad idea, right?
So, my parents (who are getting divorced soon) have flipped a couple of multi-family houses before and are in the process of buying a $665k house which they want to “put in our name”. After a lot of hesitation I said yes, but after reading all the loan documents and everything I’m getting some really bad vibes about this.
First of all, my brother and I would be the cosigners on the mortgage (30 years) for this house and I know both my parents have pretty bad credit, so I wouldn’t put it past them to somehow miss a payment or something on this house. For reference, my credit score is about 770, my brothers is close to 700 I think (or maybe slightly higher now), my mom’s is around 640-650, and my dads is either close to my moms or a bit closer to 610. It’s also worth mentioning to me that my dad has asked me before (a few months ago) to cosign a car loan for him because he couldn’t get approved at the rate he wanted… so yeah, that doesn’t make my confidence go up about this whole thing either.
Anyway… when I’ve questioned them on why I need to put this in my name/cosign it, they’ve said it’s because when they rent it out to people, my brother and I will get some of the money (they said $400-500/month) from it to help pay off our school loans. I love my parents and they’ve been nothing more than supportive/helpful/caring my entire life, but this just seems like a very bad idea to me… especially for only an additional $500/month which would be nice, but not nice enough to make me feel comfortable doing this.
I’m planning on moving out of my house with my boyfriend in a few months and I’m worried this will make it nearly impossible for me to get approved for an apartment or home of our own (although that’s likely at least 2-4 years away).
If anyone could give me some advice that would be super helpful.