Help! I found the perfect house.  My husband and I make enough money to afford it, but we got turned down for the loan because we cosigned for our child's student loans.  The loans are deferred while our child is in school, so we can't prove that the they are paying their loans off.

Now what?  

This is a common problem with the rising costs associated with college education. When you're cosigning the loan, you don't worry about it - you assume when your child graduates and gets a job, they will be responsible for paying off that loan.

Until you try to buy a house.

Even downsizing or moving can become a problem. Even though your monthly loans will be less in the new home, you may still be denied because you cosigned for the loans.

Sallie Mae, one the nation's largest student loan lenders has a checklist for getting released as a cosigner for student loan debt.  Here's the rub: the student must have already graduated and paid their loans for at least 12 months straight. They also need to pass a credit check and be able to pay.

What if you have to move for work or health reasons and your child is still in school?

There are alternative methods to purchase a house.  You can ask a seller to do owner financing, you can rent with an option to buy, or you can get a private hard money loan.  These aren’t recommended as they are high in interest, but they can be helpful for short-term financing. Ask a real estate professional for advice on which method may be most helpful to you.