non occupant co borrower

Posted: Sun May 17, 2009 7:43 pm Post subject: non occupant co borrower

I am trying to purchase my first home. I've already been pre approved for a loan but need more income to qualify for the house price range I'm looking for. I am being told that i can use a non occupant co borrower to raise the amount of loan I'm approved for. What is the purpose of the non occupant co borrower ? If I default what happens to the co borrower ... does the bank go after the co borrower or will it go to foreclosure? If my mother owns her current home (no mortgage) will this have any affect on anything?

jenkin7 · Posted: Sun May 17, 2009 10:40 pm Post subject:

Hi Guest,

If you use a co-borrower you can use his/her income along with yours and can qualify for a higher amount of loan using the combined income. A co-borrower is as much responsible for the loan as the primary borrower. If the primary borrower defaults, the lender will come after the co-borrower for the repayment of the loan. If your mother owns a home that is already paid for and has a good credit, she can co-sign on the loan.

JKennedySLG · Posted: Mon May 18, 2009 8:32 am Post subject:

ALL Borrowers on the loan will be responsible for the mortgage. If adding a non-occupant co-borrower to the loan approves you for a higher amount, please keep in mind you are qualified on based on another income which will not be contributing to the payoff of this loan. Don't put yourself into debt that you cannot pay. I hope this helps...

gmakerley · Posted: Mon May 18, 2009 9:01 am Post subject:

well put, james. all borrowers and coborrowers need to understand their liability, and far too many do not, as we have seen on countless occasions, based on posts here.

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