Q. I was wondering if you can have cosigners on a loan, even if they aren't going to be living in the house. I have good credit but haven't been at my job very long. My dad said he would cosign, but I have heard that can't happen.

A. Yes. He would be considered a "non-occupying borrower." Being a cosigner makes him 100% responsible for the payments if you default on the loan. The lender doesn't really care who cosigns as long as they are creditworthy and able to assume the debt, should something happen to the other owner. If you are late making a mortgage payment, that would also show up as a negative on his credit report as well as yours.

There are a couple of downsides to cosigning, which may or may not apply. Should your dad apply for credit for some major purchase, the fact that he has cosigned for you will increase his debt load, which could be a negative for him. Also, his name will be on your mortgage as a cosigner until you refinance. You will never be able to just take his name off this loan.

We think that his cosigning your loan will likely work out. But we would not be fulfilling our obligation if we did not warn you of the pitfalls.

Whether you're buying a home or refinancing an existing mortgage, we have a mortgage calculator that can help you make the right decisions.