Parents asked me to co-sign for a mortgage on a house that I would also live in

I’m a graduate student in an area with an extremely high cost of living. I receive a full tuition waiver and a stipend each month as a graduate assistant but this is definitely not enough to cover independent living costs. I’m blessed to have a great relationship with my parents, so I live with them at home. They helped me graduate debt free from undergrad and are willing to continue to help me out financially until I graduate with my next degree. My parents have always put me first before anything, especially when it comes to education.

Here is the issue: my parents recently asked me to co-sign on a mortgage loan. I have already told my parents this would not be a great financial decision for me since my current income is not enough to take full responsibility for the loan if the situation arose. I agree with the general consensus on this sub to never co-sign for anyone unless you’re able and willing to pay for the loan yourself.

However, there is still this little voice in the back of my head telling me that I should? I would be living in this home they’re asking me to co-sign for and although I can’t take full financial responsibility for the loan yet, I would definitely be contributing to the mortgage regardless of whether I co-sign or not. I also have no doubt that I would continue to do so even when I move out because of all that my parents have done for me.

My parents are financially responsible and both have great credit scores. (Edit: However, their income varies by season.) We live in Hawaii and the housing costs are high even for the worst homes despite low wages. The house they’re hoping to purchase is around 600k, which is the median here. My parents are able to make a 20% down payment and the rest would be on the mortgage. The mortgage each month would be a little more than what we currently pay for rent.

Is my situation any different where it would make sense for me to co-sign? I have already told my parents no, but I’m having second thoughts. Please help!

Edit: fyi – my graduate assistantship is not need based so home ownership does not affect this!

Edit #2: idk if this is vital information but my monthly stipend is about 2k/month. It isn’t much but apparently it was enough for my parents lender to consider me as a co-signer. Although my credit history is short, I recently paid off a car payment loan and my credit score increased to 800+.

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Author: /u/dalme96

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