Emilie Broughton Real Estate Blog

Should you Cosign a Mortgage Loan for your Child?

Before you put pen to paper and sign any documents here are some things to consider before consigning a mortgage loan for your child.

According to the National Association of Home Builders, in the second quarter of
2022, housing affordability fell to its lowest point since the 2007-09 recession. One
option to improve affordability is to have willing parents cosign the mortgage.
A recent Wall Street Journal article reported that 57% of parents would be willing to
cosign their child’s mortgage and 7% had done so in the past. Parents with a
household income of $100K may be set to do this, but parents close to retirement
and a fixed income have additional risk of undermining their life style or retirement
plans if they have to make payments because their child loses their job or becomes
unable to work.
Other options:
 Consider a one-time gift
 Become a Guarantor (have responsibility only if child defaults)
 Co-invest in the property
 Pledge eligible securities to make a cash down payment, such as with Merrill
Lynch’s “Parent Power” plan

This entry was posted in Blog, Real Estate.
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About Emilie

A transplant from the Pacific Northwest, Emilie has first-hand knowledge of the ins-and-outs of first-time home ownership and remodel. She has become involved in the local art community and all the diversity Southern California has to offer.

Emilie’s passion to be involved in her community led her to become a licensed Realtor and Broker.  She continues to educate herself with different aspects of real estate to support clients with a variety of needs.  She is certified as a Military Relocation Professional (MRP) to work with U.S. Service families and veterans to find affordable housing solutions.

Having worked for both a small boutique firm and a company with a global presence, in 2023 she formed Emilie Broughton Real Estate to work with buyers, sellers, landlords and tenants in California and New Mexico.

Emilie represented her region as a California Real Estate State Director for three years.  She has served as President of the Pasadena Foothills Association of Realtors and is a seven-time recipient of the Five-Star Real Estate Professionals Award for the outstanding service she provides to her clients.

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