What Is A Co-Borrower? A Beginner’s Guide
Author:
Kevin GrahamMar 8, 2024
•4-minute read
Buying a home is a common goal for many people, but for some, a lower credit score or high debt-to-income ratio (DTI) may make the near-universal goal feel out of reach. If you have someone you can co-borrow with, their credit and income may help you qualify for a mortgage and achieve your dream of owning a home.
Let’s discuss the advantages and disadvantages of using a co-borrower to qualify for a mortgage and purchase a home together.
Co-Borrower Meaning
A co-borrower is someone who applies for a loan with you and shares joint responsibility for repaying the loan. Both borrowers on the application are responsible for repayment.
Generally, co-borrowers share the title of the home. But this isn’t always the case since the loan and the title are separate. Be aware that if you’re a co-borrower and your name isn’t on the title, you’ll still be responsible for paying off the mortgage – but won’t have the right to use the house.