Family co-signer in exchange for % equity on first property

[Anthony Saunders]

I am looking to purchase my first property in San Diego. Ideally a Duplex so I can live in one unit with my partner while renting the other. I've accumulated a substantial nest egg after college and paid off all student loan debt. As it stands My DTI is at 68% In order to qualify for the loan amount I'm seeking, I need to bring that down to 48%. My partner provides stable income that would get my DTI in range. However they are not a part of the loan deal. The lender suggests asking a parent to co-sign.

Which leads me to my question. I intend to approach my mom, with an offer for % equity in exchange for a co-sign on the 30 yr loan. I’m a fiscally responsible, and just shy of gaining approval on my own. She is in a strong & stable position to easily increase my purchasing power. 
What % equity on your first investment property would you offer your mom?

[Andy Tomaswick]

Just to clarify - your mom is not bringing any equity in the form of part of the down payment, correct?  They are just on the hook if you happen to default on the mortgage?

Hard to say to be honest.  Probably not more than 10% if all she's bringing is stability to make a lender happy.  But also it's your mom, and while real estate is a numbers game sometimes its better to do good by family.  As long as you're both happy with it (and your mom doesn't feel insulted by whatever you offer her), you should be good to go.