is it posible to step out of a loan?

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Me and my father purchased a home a few months ago. I was the cosigner to back his credit.We came from Cuba 3 years ago only but i took more care on building my credit than him.But recently i pulled my credit online and it did not show any negative or adverse information,my debt to income ratio was tight.The thing is i already have a bunch of stuff on my name including a 07 toyota,and im getting married next year and my fiance is a fulltime student and eventually i will need to buy a car for her,furniture and in a not so far future my own house and;having that mortgage debt together with my dad might overload my credit,and keep from getting future loans.My question is:is there any way that one of the cosigners can step out of the loan.Can one of them put in a document that he will asume the whole responsability releasing the other one?

  1. Reply
    January 30, 2011 at 7:47 am

    Sorry to say that your kind deed to your father cannot be undone without refinancing the mortgage entirely in his name. Lenders will not remove any signer to a loan without a total refinance. To get your dad on his own mortgage, he’s going to have to qualify on his own, without your credit or signature.

  2. Reply
    January 30, 2011 at 8:27 am

    He has to apply for an entire new loan. Since you just received this loan, it may be costly to pay it off with a new loan. You need to ask, unless you can read the document yourself, if there is a prepayment penalty.

    The other big problem is that if he did not qualify for a loan by himself a few months ago it is unlikely that he would qualify now.

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