Overview of Should I Co-Sign On A House With My Girlfriend's Mom?
This Ramsey Network episode answers a caller (Jeremy, 22) who’s graduating debt-free with $50,000 saved, a $65,000 job offer out of state (plus a $10,000 moving stipend and a free vehicle), and is considering buying a house co-signed with his girlfriend’s mom to avoid renting. Hosts strongly advise against co-signing or buying with a non-spouse and recommend a slower, more secure approach: accept the job, rent for a while, save more, then buy on your own terms.
Key points and main takeaways
- Jeremy is in an excellent financial position: no student debt, $50k saved, $65k starting salary, $10k stipend, free car.
- Despite parental pressure to avoid renting, co-signing a mortgage with a girlfriend’s mother is a risky, unnecessary shortcut.
- The hosts recommend renting for 1–2 years (or more), possibly with roommates, to gain independence, learn to live on your own, and continue saving.
- Don’t enter property ownership with anyone who isn’t your spouse — romantic relationships and family ties complicate legal and financial responsibilities.
- Goal: build a larger down payment and buy later with a conservative mortgage (15-year fixed) so the payment is manageable (rough guideline: no more than ~25% of take-home pay).
Risks explained
- Relationship fallout: breakups can lead to disputes over ownership, payments, and who keeps the house.
- Legal/financial entanglement: co-ownership/co-signing means shared liability for mortgage, repairs, taxes, and credit impact.
- Liquidity and life-course risk: tying up savings in a house with someone you’re not married to can trap you financially if circumstances change.
- Family strain: mixing romantic relationships and real estate with parental figures adds social stress and potential long-term conflict.
Advice given (practical)
- Take the job and the perks (stipend + vehicle).
- Rent for at least 1–2 years to establish independence and test the relationship without a mortgage tying you together.
- Consider roommates to lower living costs and preserve savings.
- Keep saving aggressively; turning $50k + future savings into a substantially larger down payment (example target: ~$100k) will improve buying power and loan terms.
- When ready to buy, aim for a mortgage payment no more than about one-quarter of take-home pay and prefer a 15-year fixed mortgage to build equity fast.
- Never buy or co-sign with a significant other’s parent — only consider real estate partnerships with a spouse.
Action checklist (recommended next steps)
- Accept the job, moving stipend, and vehicle.
- Secure a rental in the new city; consider roommates to reduce costs.
- Create a 12–24 month savings plan to grow your down payment.
- Re-evaluate relationship status after living independently and dating long-term.
- Only pursue homeownership once you have a stable plan, enough down payment, and a partner you’re married to (if buying together).
Notable quotes
- “This is a way into a massive, massive pond of scum and disgustingness and danger and all kinds of stuff.”
- “Don’t do it with anyone else unless you’re married to them.”
- “You’re too smart for this — you’ve got a great job, no debt, a stipend, a free car. Just go live on your own and save.”
Quick summary
Jeremy has an excellent financial start but is pressured by family dynamics and tempted to co-sign a house with his girlfriend’s mom to avoid renting. The hosts strongly advise against it: accept the job and perks, rent and live independently for a year or two, save more, and only buy a home on your own or with a spouse later. Co-signing with non-spouses (especially in-law relationships) creates high legal, financial, and emotional risk.