How is housing loan disbursed

[Vox Animo]

Long story short, i need some one to cosign for my off-campus housing. My parents don't want to do it because they think it will make it harder for them to buy a new car in a few months. And my brother is worried about the debt. Is my housing loan disbursed all at once, because i told him if he cosigned i would pay my nine months up front?

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[angel80]

Financial Aid is disbursed twice a year: half when you start the school year, and half of the money midway through the year (around Dec, Jan). The money goes to your school, the school takes out the amount needed for tuition, various school fees, etc, and then sends you a check for whatever is left over. What you do with that money is up to you. The school will never know.

 

[Vox Animo]

how much would cosigning affect a person credit?

 

[Khenon]

how much would cosigning affect a person credit?

So you need someone to cosign for housing, or a loan? If it's cosigning for a house/apartment, then it shouldn't go on anyone's credit unless you don't pay your rent. If we're talking about cosigning a loan, then it will show up on their credit report as a loan that they are cosigned on. I'm sure it depends on who is looking at the credit report, as far as how serious they're going to factor in one's debt as a cosigner.

My parents cosigned for vehicles for both me and my sister, and were told that if they wanted more credit for a house they could have us send bank statements and canceled checks showing that we had been making the payments on the cars. As it turned out they were still approved for a sufficient amount for a house, and so we didn't have to do this. And keep in mind my parent's income is quite low (<$25K per year), so it wasn't because they are rich or something.

I'm sure if the above situation would apply to your parents trying to buy a car though. This is obviously just one example of the possibilities.

 

[heech]

If this is just an apartment building, it really shouldn't matter. They'll run a credit check on him, which will add to his inquries (possibly dropping his FICO by some tiny amount).

My big concern when I cosign is whether the person's good for the debt. I wouldn't cosign for anyone that wasn't 100.00% responsible. Even rental housing can have a credit impact. If (hypothetically) your landlord and you have a falling out, and you move out mid-year... well, your landlord just might file a delinquent report with a credit agency claiming you owe him rent for the rest of the year. This now appears on your cosigners' credit report, too.

Credit's a serious thing, so I don't blame anyone for being very careful.