Does Cosigning a Mortgage Affect My Credit?

When you cosign a mortgage, the loan immediately shows up on both credit files, listing the full balance, monthly payment, opening date, and any payment history, so the account affects your score from day one. A hard inquiry is also recorded on your report, and the average age of your accounts can drop; unlike credit cards, installment loans do not count toward revolving utilization, though the new monthly payment can nudge scores down briefly until on-time payments build positive history. Debt-to-income (DTI) is not on credit reports, it is a lender calculation, so do not confuse DTI with utilization.

Pull all three bureaus to confirm the tradeline is reported correctly and that you are listed as co-borrower or cosigner, consider a third-party tri-merge audit if you want a neutral review, and learn about getting your free credit reports or review how a hard inquiry affects your report.

Cosigning adds a full mortgage tradeline to your credit and shows up as real liability to anyone who checks.

• Bureaus see a standard mortgage tradeline on your report, with balance, payment history and late payments that count against your score; missed or late payments are reported for both you and the borrower.
• Lenders and underwriters see the debt as a liability affecting debt-to-income ratio, reserves and eligibility in automated systems (DU/LPA), plus whether the borrower is occupant or non-occupant and if you share equal legal liability. Some lenders may exclude the co-signed payment from your DTI if the primary borrower has 12+ months of on-time payments from their own account and you are not on that account.
• You should confirm these specifics with the lender and review protections and responsibilities explained by the CFPB and mortgage guidelines from Fannie Mae: see what it means to cosign a loan and Fannie Mae non-occupant borrower guidelines for plain-English underwriting details.

Ask the lender how they treat co-signed debt in underwriting, insist on account-level access to monitor payments, and get agreement in writing on any release or refinance path before you cosign.

Cosigning usually causes a small immediate dip, then trends depend on payment history and file strength.

A new hard inquiry and a new installment account often lower scores by about 0–15 points short term. The added loan can reduce average age, nudging scores down slightly at first. If payments are perfect, the mortgage's positive history can push scores back up, often ending roughly neutral to +10–30 after 6–12 months on thin credit files. The biggest driver is payment history, it can undo gains or create damage quickly.

If the borrower posts a 30-day late, expect a larger hit, commonly −40 to −80 points depending on your profile and scoring model, with 60/90-day delinquencies causing still bigger drops. Results vary by model and bureau, especially between FICO and VantageScore versions. For more on how different factors weigh into your FICO score. Take this as conservative, educational ranges, not guarantees; your exact movement depends on your credit mix, history length, and the severity and timing of any missed payments.

Missing mortgage payments as a cosigner quickly and sharply lowers your credit, because each late mark appears on both credit reports and counts heavily.

At 30 days late the lender will report a first derogatory, at 60 days another, and at 90+ days those become severe delinquencies; recency and severity drive score damage. Mortgages are high-weight tradelines, so a single 90+ day mortgage default can cut scores deeply and linger, since most negatives can remain up to seven years under the Fair Credit Reporting Act. Downstream risks include collections, foreclosure, and deficiency balances that also hit your file.

Act fast to limit harm: arrange a catch-up or payment plan before day 30, request hardship or forbearance in writing, document who pays each month, and ask the primary borrower for written acknowledgement of agreements. Monitor all three bureaus monthly until the account stabilizes and dispute any errors using official guidance on how to handle credit report errors.

Key takeaways:

• 30/60/90+ are separate, worsening derogatories.
• Mortgages carry heavy score weight and long recovery time.
• Negatives generally stay on file up to 7 years.
• Act before 30 days, get hardship in writing.
• Monitor three bureaus and document payments.

Cosigning can sharply reduce how much new credit you can obtain because the entire mortgage payment usually counts against your borrowing capacity.

• DTI impacts: lenders add the full loan payment to your debt-to-income ratio, lowering the income available to qualify for autos, cards, or your own mortgage. Automated underwriting systems often treat co-signed obligations conservatively, flagging higher risk and shrinking approved loan amounts.
• Common exclusion test: some lenders exclude the liability if the primary borrower has 12 months of documented, on-time payments from their own account and you receive no reimbursement.
• Documentation you need: bank statements proving the primary borrower's 12 months of on-time payments, proof you were not reimbursed, and clear account ownership records.

Prepare now by gathering those statements, keeping liquid reserves, and avoiding new credit applications while you remain a cosigner. If you expect future borrowing, ask the lender how automated systems will count the liability and whether the exclusion applies. For more on how lenders view DTI and qualifying rules, see the CFPB's debt-to-income ratio explanation from the CFPB.

Yes - cosigning can change your credit mix and that change can nudge scores, mostly modestly. Adding a mortgage converts your profile toward installment credit, and credit mix is a smaller FICO factor (roughly 10%), so a well-behaved mortgage can slightly help thin files by diversifying accounts. That benefit only appears if payments are on time; any late or missed payment will erase the mix advantage and damage your score far more than mix can help.

Expect short‑term effects from opening the loan, like a small dip from new-credit inquiries and a lower average age of accounts, then gradual recovery as on-time history builds. On thick credit files the mix boost is usually minor; on thin files the mortgage can be more meaningful. For official breakdowns of factor importance see FICO score factor weights.

Cosigning can help or hurt you depending on the borrower's behavior, your file thickness, and whether payments are timely.

• Scenario 1 - Thin-file co-signer, perfect payments. Assumptions: starting score 620–660, very few accounts. Outcome: small dip first months, then +10–20 points over 12 months. Why: new installment account briefly lowers average account age and triggers a hard inquiry, then on-time history and improved credit mix raise score.
• Scenario 2 - Strong-profile co-signer, perfect payments. Assumptions: starting score 740–780, long credit history. Outcome: near-neutral change after 3–6 months. Why: added loan increases total available credit minimally and slightly lowers average age, but flawless payments keep utilization and payment history strong, so scoring impact is negligible.
• Scenario 3 - One 30-day late at month 8. Assumptions: starting score 670–720, average file depth. Outcome: −50 to −80 when late posts, recovery takes many months with steady payments. Why: payment history drives most score moves, a 30-day delinquency signals higher default risk and lowers score until many months of clean history rebuild trust.
• Scenario 4 - Primary pays from their account for 12 months. Assumptions: starting score 680–740, solid history. Outcome: credit score may stay stable, but mortgage underwriter may document that payments came from the primary's account, supporting exclusion of that mortgage from your debt-to-income ratio at the next mortgage application. Why: scoring models look at account status and history, underwriters review payment source and may allow DTI adjustments during manual underwriting.
• Scenario 5 - Employment loss, forbearance properly coded. Assumptions: starting score 650–720, mid-depth file. Outcome: minimal immediate score effect if no delinquencies reported, but future manual underwriting faces higher scrutiny. Why: forbearance coded correctly prevents delinquencies from hitting payment history, but lenders and automated/manual reviews flag for risk, affecting loan eligibility.

Ranges are illustrative, they vary by scoring model and version; these vignettes assume typical FICO/Vantage behavior and common underwriting practices.

Cosigning for a family member or partner exposes you to serious personal, financial, and legal risks.

You become legally responsible for the loan, so missed payments or default hit your credit and can trigger collections, wage garnishment, or lawsuits. Relationships can strain when money and housing mix, especially if one person hides debts or expects you to cover shortfalls, creating a moral hazard. Breakups or divorce complicate title and payment responsibility, and being tied to that mortgage can block your ability to qualify for your own loan or drain cash you need for a down payment or emergency.

Before you sign, insist on guardrails: a written repayment plan with dates and consequences, view-only access to payment history, a contingency savings buffer for at least three months of payments, and a target date and conditions for a refinance or cosigner release. Consider adding these points to a simple contract and consult an attorney for wording. For an official overview of obligations and hidden risks, read the CFPB guidance on cosigning risks.

Cosigning can put your credit at risk, but five practical steps sharply reduce that risk and keep you in control.

1. Verify affordability, calculate the new debt-to-income impact, and add conservative buffers so missed payments are not your problem.
2. Require autopay from the primary borrower's account, keep read-only proof of the payment setup, and confirm transactions monthly.
3. Create a written side agreement that spells out who pays, payment dates, late fees, and remedies, and have both parties sign it.
4. Build a 2–3 month reserve fund held separately and earmarked strictly for the loan to cover shortfalls or emergencies.
5. Set an exit plan with a target timeline and measurable triggers for refinance or cosigner release once LTV and income qualify.

Monitor all three credit reports monthly and flag any late entries immediately; consider a neutral third party to audit your tri-bureau files and spot early warning signs. For template letters and consumer tools see CFPB sample letters and tools, and to check reports use the AnnualCreditReport.com official site.

You can be removed as a cosigner by getting the loan refinanced, having the loan assumed or released by the servicer, or by selling or paying off the mortgage.

Refinance (most common)

• New loan removes you when the primary borrower qualifies alone.
• Hurdles: credit, income, seasoning (often 6–12 months), loan-to-value limits, debt-to-income (DTI) ratios, no recent late payments.
• Docs: pay stubs, tax returns, current mortgage statement, title policy.

Assumption or release of liability (servicer approval)

• Some loans allow assumption, which replaces the borrower on the note; servicer must approve.
• Servicer will usually re-underwrite income and credit, and may require a release of liability form.
• Check servicer rules and your mortgage note for assumption language, many servicers publish policy pages and requirements.

Practical steps to pursue removal

• Contact the servicer and request written criteria for assumption or release.
• Gather 12+ months of on-time payment proof, tax returns, pay stubs, and the mortgage note.
• Ask whether documented 12 months of payments can be used by future lenders to exclude the mortgage from your DTI before a formal release, many lenders allow this with proof.
• If refinancing, shop lenders and get preapproval showing the primary qualifies without you.
• After a release or refinance, confirm the trade line is updated and obtain written confirmation; check credit reports.

For servicer rules and borrower protections see the CFPB mortgage servicing rights page and your servicer's assumption policy page for specifics.

Cosigning creates immediate and ongoing credit risk for you, same as the borrower, because the loan appears on your report and payments or delinquencies affect your scores.

Can I remove late payments after release?

Release from the loan does not erase accurate payment history. If the servicer or bureaus reported correctly, late marks stay; only proven reporting errors can be removed by dispute.

Who gets the 1098 interest deduction?

Tax deduction generally goes to the person who paid the mortgage interest and who is legally liable. For complex situations consult a tax professional and see the IRS Form 1098 overview for guidance.

Will forbearance hurt my score?

If a servicer codes forbearance correctly, it should not be reported as a standard late payment, so scores may be protected. Missed payments that are not coded as forbearance will be reported and harm your credit.

Can I dispute if I never got the bill?

Not receiving a bill does not remove your legal obligation; you remain liable. Only dispute factual inaccuracies with credit bureaus or the servicer, start with the CFPB guide to disputing credit report errors.

Will this block me from my own mortgage?

Cosigning raises your debt-to-income ratio and reserve requirements, which can limit your borrowing power. Lenders may exclude the obligation if you document 12 months of on-time payments and meet specific underwriting rules; ask your lender what documentation they require.