Father's Day: How does hiring a housing credit with a family member work?

Can I apply for a home loan with my father? How does it work?

Yes, it is possible to request a home loan with a parent, either as a co-borrower or as a guarantor. This strategy can be useful when individual income is not sufficient to meet the bank's requirements.

These are the options for hiring a home loan with a father:

Co-holder of credit

• The father enters as a co-signer of the loan, assuming the same responsibility in the debt payment.

• Both incomes are considered in the credit analysis, increasing the payment capacity.

• Both are obligated to pay the installments, regardless of who uses the credit.

Guarantor

• The father is not the credit holder, but assumes the responsibility of paying the debt if the primary holder does not fulfill the installments.

• This option is more common in home loans when the applicant's income is not sufficient.

• The guarantor needs to have a positive credit history and a stable financial situation to be accepted by the bank.

Read also: Mortgage credit: How to stop being a guarantor?

What are the advantages of hiring a father's credit?

• Greater ease in credit approval: With combined incomes, the bank sees lower risk in granting the loan;  

• Possibility of obtaining better conditions: Lower interest rates and higher amounts can be negotiated.

• Financial support and security: For those starting their financial life, having a parent as a co-signer or guarantor can help obtain better opportunities.

But you must be careful when hiring a loan with a parent: since both are responsible for the credit, if there are financial difficulties, the debt can affect both. In addition, a delay or non-compliance will harm the credit score of both.  

It is essential to evaluate if the decision makes sense for both parties and if the father has the conditions to take on this commitment.

Pay attention to this guide: Housing credit contracting: Essential steps for an informed decision

Hiring a home loan with a parent can be an effective solution to obtain better financial conditions and facilitate approval of financing. 
However, it is essential to evaluate the risks and responsibilities associated. Before moving forward, it is advisable to openly discuss the financial situation and consult several banks to clarify all doubts in advance. Or you can directly contact the credit intermediaries at Poupança no Minuto who, at no cost, provide all information, collect proposals from all banks, and help you choose the best conditions!

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