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MoMo Productions/Getty Images ADVERTISER DISCLOSURE We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. HOW WE MAKE MONEY. The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. MoMo Productions/Getty Images Written by Sarah Li Cain Written by Sarah Li Cain Insurance Contributor Sarah Li Cain is an experienced content marketing writer specializing in FinTech, credit, loans, personal finance and banking. Her work has appeared in Fortune 500 companies,… Sarah Li Cain * Aug. 10, 2022 / * 4 min read Edited by Bill McGuire Edited by Bill McGuire Bankrate senior editor for mortgages Bill McGuire has been writing and editing for more than four decades at major newspapers, magazines and websites. Bill McGuire * Aug. 10, 2022 / * 4 min read Share this page SHARE * Facebook logo Facebook * Twitter logo Twitter * LinkedIn logo LinkedIn * email-icon Email Bankrate Logo WHY YOU CAN TRUST BANKRATE More info While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. 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All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. ON THIS PAGE Jump to Open page navigation ON THIS PAGE Close page navigation * What is a co-borrower on a mortgage? * Who can co-borrow a mortgage? * Does it matter who’s the borrower and who’s the co-borrower? * When is a co-borrower a good idea? * Can a co-borrower come off a mortgage? * Alternatives to a co-borrower PREV NEXT Having a co-borrower on your mortgage can make sense if it helps increase your chances of getting approved for a loan. If you’re considering adding a co-borrower to your application, here’s everything you should know. WHAT IS A CO-BORROWER ON A MORTGAGE? A co-borrower, also referred to as a co-applicant, is an additional borrower on a mortgage. In a co-borrowing situation, both borrowers complete an application, and the mortgage lender considers both your qualifications and those of the co-borrower, including assets, credit history and income. Typically, the borrower with the better credit profile determines the terms of the loan. Importantly, both you and the co-borrower can have ownership of the property — in other words, both your names are on the title — and are responsible for repaying the mortgage. A co-borrower isn’t the same as a co-signer. A co-signer doesn’t have their name on the property title, but is responsible for repaying the loan. Generally, a co-signer can be beneficial if a borrower needs help from someone with good credit to get approved for a mortgage. If the borrower fails to pay, the lender has the right to pursue payment from the co-signer. A borrower might ask his parent to be a co-signer on a mortgage, for example, since the parent’s credit history and added income and assets can increase their chances of securing a competitive mortgage rate. WHO CAN CO-BORROW A MORTGAGE? The following types of people can be co-borrowers or co-applicants on a mortgage: * Spouses * Domestic partners * Friends * Relatives In general, any adult that’s willing to assume legal responsibility for repaying a mortgage and wants ownership in the property can be a co-borrower. Each potential co-borrower presents different requirements and liabilities, depending on the type of co-borrower arrangement you choose. For example, a co-borrower (or co-applicant, if you are not married to the other borrower), will both be listed on the title of the home and responsible for paying the mortgage. However, guarantors only have to pay the mortgage if the primary borrower fails to pay. The types of co-borrower relationships are: Type of co-borrower Relationship Financial disclosures? Listed on title? Responsible for paying the mortgage? Co-borrower Spouse/partner Yes Yes Yes Co-applicant Friend/relative Yes Yes Yes Co-signer Friend/relative Yes No Yes Guarantor Friend/relative Yes No Only if primary borrower can’t pay Title holder Spouse/partner, friend/relative Yes Yes No DOES IT MATTER WHO’S THE BORROWER AND WHO’S THE CO-BORROWER? Since the borrower and co-borrower are equally responsible for the mortgage payments and both may have claim to the property, the simple answer is that it likely doesn’t matter. In most cases, a co-borrower is simply someone who appears on the loan documents in addition to the borrower. Some lenders, however, may indicate a “primary borrower.” The criteria for determining who this person is differs between lenders. Some may define the primary borrower as the person with the higher income, for instance, or as the person who appears first on the application. WHEN IS A CO-BORROWER A GOOD IDEA? Co-borrowing a mortgage is best when both parties want their name on the property and agree to share the responsibility of paying back the loan. It’s typical for partners or spouses who reside in the same property to be co-borrowers. Having a co-borrower with good credit can also be a good idea if it boosts your chances of being approved for a mortgage (and at the best possible rate), especially if your credit score is on the fairer side. It’s also a good idea if the co-borrower’s financial situation means that you can add additional assets and income to your application. A higher income could mean qualifying for a larger mortgage since it indicates to lenders you can make a higher monthly payment. Make sure you consider the unique financial situation of you and your co-borrower when making this decision. Times when it makes sense to add a co-borrower: * When you and the co-borrower have an equal partnership in the property and both benefit from the loan * When your co-borrower has strong finances and credit score * When a co-borrower has a lower debt-to-income ratio than you CAN A CO-BORROWER COME OFF A MORTGAGE? The short answer is yes. However, while it’s possible to remove a co-borrower from your mortgage — such as if that person is deceased or the loan is completely paid off — the process can be somewhat challenging. That’s because lenders are reluctant to remove borrowers since doing so can increase their risk, and cuts into their ability to collect payments from both parties. Still, you can remove a co-borrower from a mortgage. It may require paying fees (some quite significant) and take some time, but here are a few methods: * Speak to your lender. The first logical step is to see what your lender can do. Lenders that are willing to remove co-borrowers may require the remaining borrower to re-qualify for the loan by themselves. That means you’ll need to have enough income to make the monthly payments and a good credit profile. The co-borrower may also be required to sign a document, such as a release of liability. * Refinance your mortgage. Refinancing your existing mortgage might be a possible solution if your current lender won’t release your co-borrower. Again, you’ll need to have good credit and sufficient income and equity to qualify. * Transfer your mortgage. If your mortgage is an assumable loan, you should be able to release a co-borrower and transfer your mortgage to someone else (ideally, you). Your lender will need to review your credit, and there may be fees to pay. * Sell your home. If you’re not attached to the property (say you inherited it), selling it and using the proceeds to pay off the mortgage might be an option to release all borrowers from the debt. ALTERNATIVES TO A MORTGAGE CO-BORROWER Borrowers who have poorer credit but don’t want to add a co-borrower to their mortgage could consider the following: * Establish or reestablish credit. Working on improving your credit can up your chances of getting approved for a loan, or getting approved for a loan with a more favorable interest rate. Building credit takes time, so be patient. One of the easiest strategies to improve your standing is to make on-time payments on any existing balances, or to open a secured credit card and do the same. * Pay down debt. Paying down your debt decreases your debt-to-income (DTI) ratio, showing lenders that you have the means to take on a mortgage by yourself without stretching your finances too thin. * Consider an FHA loan or VA loan. Both the FHA and VA loan programs have less strict credit and down payment requirements, which can help you qualify for a loan independently. ON THIS PAGE * What is a co-borrower on a mortgage? * Who can co-borrow a mortgage? * Does it matter who’s the borrower and who’s the co-borrower? * When is a co-borrower a good idea? * Can a co-borrower come off a mortgage? * Alternatives to a co-borrower Written by Sarah Li Cain Insurance Contributor Read more From Sarah Sarah Li Cain is an experienced content marketing writer specializing in FinTech, credit, loans, personal finance and banking. Her work has appeared in Fortune 500 companies, publications and startups such as Transferwise, Discover, Bankrate, Quicken Loans and KeyBank. Edited by Bill McGuire YOU MAY ALSO LIKE * MORTGAGE RATES CRUSH IT AGAIN, PLUNGE TO A NEW ALL-TIME LOW * HOMEOWNERS WITH MORTGAGES PRIOR TO 2008 STILL HAVE OPPORTUNITY TO REFINANCE * WHAT IS A JUMBO LOAN AND WHEN DO YOU NEED ONE? 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