Posted by David Alexander on July 28, 2001 at 16:14:47:
when you take over a loan of someone elses.
After a few years they go out and decide to buy a house… there credit is great because you have been making payments on their current loans flawlessly.
They go out to get a mortgage that one shows up. It may or may not count against their ratios… and so if the payment on the loan was a 1,000 dollars a month which your paying, their lender may only give them credit like it was a rent house say for (75%)$750 which would leave $250 a month counting against their ratios.