Any insight on how the whole co-signer process works?

I currently have a home in another state that I am in the process of selling, however, although I have a buyer already living in & renting the house, it is not "sold" as of yet. I have found a great buy at my current location, but due to the fact that I am recently retired and have a mortgage already, I cannot qualify for a loan on my own. My daughter has offered to co-sign the loan --- she has a very good income and only one very small debt. However, the bank will still not loan us the money stating that the debt to income ratio is too high. My question is, how much of the co-signer's income counts? In my case it would appear to be very little. My daughter could easily qualify for the loan on her own, if this was going to be a her primary residence. She could also qualify for a loan to buy the house as an investment property, but would have to put down 20% which is not feasible at this time.Any insight on how this whole co-signer process works would be greatly appreciated. by grampsinfl from Orlando, Florida. Jan 5th 2010 Reply