Whether it’s a parent helping a first-time buyer or friends purchasing together, buying a home with more than one name on the loan comes with a few extra considerations.
Co-Signer vs. Co-Borrower
A co-signer guarantees the loan without holding ownership, while a co-borrower is both on the loan and on the title, sharing ownership and responsibility.
What Lenders Look At
- All borrowers’ income and debt are considered for qualifying
- The lowest credit score among borrowers is typically used
- Everyone on the loan is equally responsible for repayment, regardless of who lives there
Things to Discuss Upfront
Talk through what happens if one person wants to sell, refinance, or move out before you sign anything. A written agreement between co-borrowers can prevent problems later.
Since this one’s mortgage-related, Jesse’s the right call. Reach him at 321-501-9579 to talk through your situation.