Co-Signers and Income Verification

Q: What if one of the applicants is not currently working? My mother never worked in her life but the car dealers allowed her to be one of the co-signers for all of our vehicles and now my father is not working but I am and no one wants to give me the loan.

Carol M. – Houston, Texas

A: Some information is missing in this scenario. There is no such thing as a co-signer in the community state of Texas, but a co-buyer is okay. Based on the customer’s credit, some lenders may permit one vehicle per spouse, hence the mother having to be part of the deal even if she didn’t work.

In the daughter’s scenario, plenty of verifiable income is required! With zero credit or bad credit the debt to income ratio plays a big role in being approved for a loan by herself. A co-buyer will only help in this scenario if the co-buyer can lower the risk of repaying for the vehicle, which the mother can’t since she is not working.

Agustin Vasquez, Jr., General Manager, Mack Massey Chrysler Jeep Dodge, El Paso, Texas