A Guide for Parents Co-Signing Jumbo Loans
Especially in pricey markets, it isn’t rare that lenders let parents jump on board and help their adult children become homeowners by co-signing for a jumbo loan.
According to The Wall Street Journal, the typical scenario is “a first-time home buyer whose salary has a strong upward trajectory but who hasn’t been on the job long enough to meet income requirements to buy property in a pricey locale.”
But when no lenders in the area are willing to allow this, there are some alternatives, such as getting two conforming loans, or purchasing a multifamily unit and using an investment-property mortgage.
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