Cosigners can help some buyers qualify for a home purchase. Typically what is intended with the word cosigner is more technically called a non-occupant co-borrower. This is a person who will sign as a borrower on a loan that is used to purchase a primary residence for the primary borrower.
Non-occupant co-borrower can help with qualifying income. They typically cannot help to compensate for the primary borrower’s non-qualifying credit.
Loans that allow for considering non-occupant co-borrower income are helpful for borrowers whose own income is too low to qualify for their purchase. Often a parent can help a child who is a student, as one frequent example.
The non-occupant borrower’s credit must qualify and both borrowers’ debts will be included in the debt payment to income calculations.
Often non-occupant borrower is added to help with FHA mortgage qualification. Some conventional loan programs also allow for non-occupant borrowers.
Please contact me with any questions about your home purchase.
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