Posted on: 08th Apr, 2004 10:14 pm
A co-borrower is a second borrower who signs the promissory note for a mortgage loan along with the primary borrower.
The primary borrower may not alone qualify for the loan. In such a case, the co-borrower's income, assets, credit history, etc are combined with that of the primary borrower. This helps them to qualify for the loan at a reasonable interest rate. The co-borrower's name must also appear on the mortgage or the deed of trust. He is equally obligated to pay off the loan as the primary borrower.
Example:
Daniel wants to take a mortgage loan from Rodger. But his income and credit history does not allow him to qualify for the loan. His friend John then joins him. Rodger considers the financial status and credit profile of both the borrowers before approving the loan. This helps Daniel and John in getting the mortgage at a better rate of interest. Here, Daniel and Rodger are both co-borrowers.
The primary borrower may not alone qualify for the loan. In such a case, the co-borrower's income, assets, credit history, etc are combined with that of the primary borrower. This helps them to qualify for the loan at a reasonable interest rate. The co-borrower's name must also appear on the mortgage or the deed of trust. He is equally obligated to pay off the loan as the primary borrower.
Example:
Daniel wants to take a mortgage loan from Rodger. But his income and credit history does not allow him to qualify for the loan. His friend John then joins him. Rodger considers the financial status and credit profile of both the borrowers before approving the loan. This helps Daniel and John in getting the mortgage at a better rate of interest. Here, Daniel and Rodger are both co-borrowers.
i discoverd that the co-borrower is not on the mortgage note does that mean that all payments I make will only show up on my credit report and does this releas payment reponsibility to co-coborower.?
To Isis,
A co-borrower generally has to sign on the mortgage note as a mark of promise to repay the loan. Itstrange that the co-borrower on your loan is not on the promissory note. Since he is not on the mortgage note, it doesnt look like hes responsible for the mortgage payments. I think you need to talk with the lender and check with them what mortgage documents he actually signed and what exactly his responsibility towards the mortgage is.
To Asuzu,
You can surely use your son as a co-borrower for the loan, in case you do not qualify for it on your own. Though your son is going to be a co-singer, he will have to meet all the required criteria to be eligible to co-sign on the loan. He is also going to be equally responsible for repayment of the loan.
A co-borrower generally has to sign on the mortgage note as a mark of promise to repay the loan. Itstrange that the co-borrower on your loan is not on the promissory note. Since he is not on the mortgage note, it doesnt look like hes responsible for the mortgage payments. I think you need to talk with the lender and check with them what mortgage documents he actually signed and what exactly his responsibility towards the mortgage is.
To Asuzu,
You can surely use your son as a co-borrower for the loan, in case you do not qualify for it on your own. Though your son is going to be a co-singer, he will have to meet all the required criteria to be eligible to co-sign on the loan. He is also going to be equally responsible for repayment of the loan.
My husband and I are trying to purchase our first home. If my parents (who already own multiple homes) are co-borrowers for our loan does that disqualify us for the first time home buyers programs the government is offering since they would be co-borrowers?
CAN THE CO-BORROWER FILE THE FIRST TIME TAX CREDIT FOR A HOME?
Does a non-occupying co-borrower on a mortgage application for a purchase, have to go on title as well?
To DENISE,
As a co-borrower, you can claim the first time buyer tax credit, provided you are on the property deed and you use it as your primary residence.
To zitter,
A non-occupying co-borrower does not necessarily have to be on the property title. However, some lenders require the co-borrower to be on the title to the property. But there is difference between co-borrower and a co-signer. In case of non-occupying co-signers, the person co-signing on the loan does not have to be on the title.
As a co-borrower, you can claim the first time buyer tax credit, provided you are on the property deed and you use it as your primary residence.
To zitter,
A non-occupying co-borrower does not necessarily have to be on the property title. However, some lenders require the co-borrower to be on the title to the property. But there is difference between co-borrower and a co-signer. In case of non-occupying co-signers, the person co-signing on the loan does not have to be on the title.
Can my buddies bad credit bring my score down by just simply signing as a co-borrower?
I co-signed for my sister on a loan....how should the deed read for purposes of right of survivorship...right now it says she is an unmarried woman and i'm a married woman as sole and separate property....i want it to act the same as joint tenants -- so is that the way the deed should have read...?
Hi jasonkd,
Your buddy's bad credit won't affect you if you cosign a loan for him/her. You will be able to cosign for the loan depending upon your credit score and income.
To Frankie,
You need to contact an attorney and he will help you draft the property deed in such a manner that the ownership would be "joint tenancy with right to survivorship".
Your buddy's bad credit won't affect you if you cosign a loan for him/her. You will be able to cosign for the loan depending upon your credit score and income.
To Frankie,
You need to contact an attorney and he will help you draft the property deed in such a manner that the ownership would be "joint tenancy with right to survivorship".
i'm a co-borrower on a mortgage for my brother about two years ago since he was unable to get a mortgage with his credit score. i'm wanting to release my name from the mortgage. he have went to our mortgage lender and he said they have denied him his request to refinance with his current credit score even though he haven't had any late mortgage payment in the last two years and also with his high income.
i'm planning on buying a house and need to remove my name from his mortgage so that i can get a mortgage of my own. is there anything i can do to remove my name from his mortgage if he's not willing to refinance or his unable to with his low credit score?
i'm planning on buying a house and need to remove my name from his mortgage so that i can get a mortgage of my own. is there anything i can do to remove my name from his mortgage if he's not willing to refinance or his unable to with his low credit score?
Hi alexsmt,
I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/predeal/about37029.html#158986
Take a look at it. Hope it helps you.
Take care.
I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/predeal/about37029.html#158986
Take a look at it. Hope it helps you.
Take care.
i helped my mom refiance her home and I am the co-borrower. I also own a home in another state, would I be able to refiance that home as well knowing that I am on another loan?
Hi Guest,
It will be your lender's discretion whether or not he will let you refinance the property as you are a co-borrower for another mortgage.
Thanks
It will be your lender's discretion whether or not he will let you refinance the property as you are a co-borrower for another mortgage.
Thanks
We applied for a home loan. I have minimal income and have been on job a few months. I am listed as borrower and husband as co-borrower yet he has the income to qualify for the loan. Why is the loan set up that way?
Hi essie!
Welcome to forums!
This is something which you need to clarify with your lender. He will be able to assist you in a better manner in regards to your query.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
This is something which you need to clarify with your lender. He will be able to assist you in a better manner in regards to your query.
Feel free to ask if you've further queries.
Sussane