<p>Hi all, </p>
<p>New member to CC, but have read advice here previously due to search engine results. My question is for those who have had experience with this or are in the know. We have a high school senior who is preparing to apply EA to a couple of CSS universities. We also have a married son who recently purchased a home in another town. My husband cosigned a FHA loan for our son’s property mostly because they couldn’t get quick enough information on their own student loan repays and the market and seller were quite ripe and we needed to move on.</p>
<p>So, here is the question: How to we categorize my husband’s role in this purchase on CSS Profile? Is it just investment? We aren’t gaining anything financially, it’s just what we can do for family. We don’t have much money in the deal and all three signers have little equity thus far. </p>
<p>Any help greatly appreciated.</p>
<p>My understanding is that being a co signer on a collateralized loan does not mean you own any piece of the collateral. That is a whole other thing. For instance, if a parent co signs a car loan, and is not named on the title as the owner, that parent has no ownership of the car at all. It just means that if the car loan payment is late, it appears on the parents credit report and the parent is contacted about the payment not being made as well as the other cosigner and if the car is ever repossessed for for non payments and the proceeeds do not pay of what’s left on the loan both cosigners of that loan are liable for the discrepancy. </p>
<p>So your husband has NO ownership of the house just liability for it. So it does not show up on the PROFILE at all as the form is only interested in assets, not liabilities. There is no list of what you owe in credit cards, or anything else. The only time it would be an issue is if you are listing an asset and the net market value of the listed asset is decreased by any loans against it. So, if your husband’s is listed as an owner of the property on the title, he has to include that as an asset, his portion of the ownership of it, but the value of that asset would be decreased by the amount owed on it.</p>
<p>What does the deed to the property say? Is your husband listed as an co-owner on the deed?</p>