Co-signer experiences

[Amy Shari]

Hi there!

So I have a new applicant for my small house in a blue collar neighborhood. It is a very young couple with a child. Because of their lack of credit history (hers) and previous credit issues (his) I told them within a few minutes that I would not be able to rent to them.

They asked if I would consider a co-signer and I said I had never considered doing that before and I would have to think about it and of course it would require the co-signer to have excellent credit.

They came back with the young girl's Big Brothers/Big Sisters mentor that has known her since the age of eight. This woman and her husband have impeccable credit. They have been married over forty years, owned their own house for 36 years, he has worked at the same job for 29 years and makes over $60,000. This older couple has agreed to co-sign for the younger couple on this lease. I am torn over what to do.

The younger couple both have jobs (he has two jobs) and their income to rent ratio falls under 30%. But I am wondering if the older couple are making a mistake.

I look at the younger couple and think that if I was them I would be living in a small one bedroom apartment and just dealing with it...saving up money etc..which would be in this neighborhood about $675...instead of looking at my two bedroom house (800sq feet) at $850.

I would love to hear experiences you all have had with co-signers good and bad.