Are you familiar with "buy for" loans?

Asked over 2 years ago - Wendell, NC

My son in TN has asked my husband and I (NC) to do a "buy for" loan to get a house for him. We have a mortgage on our own home, are retired and on Soc. Sec. and small retirement. What are "buy for" loans and would this impact our credit rating should we need to purchase a new car in the near future?

He told us, that we would buy it under our credit rating, but he would make the payments.

Attorney answers (1)

  1. Dorothy G Bunce

    Pro

    Contributor Level 20

    Answered . I am not familiar with the term "buy for" either and because no one else has answered this question in 7 days, I suspect that it is a "made up" term.

    If you finance the purchase of any real estate, it will continue to show up on your credit report as your debt even if you put the title into your son's name. If he is late making any payment, it will have a negative impact on your credit and will not affect his credit at all. You having a large debt will making it more difficult to obtain additional credit even if payments are made on time.

    I answer lots of questions from people that regret co-signing loans for family & friends. IMHO, it is a way to destroy the relationship. When your son qualifies to finance the purchase of a home on his own, he will have earned this right.

    Hope this perspective helps!

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

17,423 answers this week

2,341 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

17,423 answers this week

2,341 attorneys answering