Can Someone Help Me Qualify for a Mortgage Without Living in the Home?
Yes. In some situations, a family member or another eligible individual may be able to apply for the mortgage with you without living in the home. This person is called a non-occupant co-borrower.
Why Would Someone Use a Non-Occupant Co-Borrower?
A non-occupant co-borrower can help a buyer qualify for a mortgage when they don’t meet the lender’s requirements on their own. This may be because the buyer has limited income, is just beginning their career, has little established credit, or simply needs additional qualifying income.
Does the Non-Occupant Co-Borrower Own the Home?
In most cases, yes. Since they are signing the mortgage documents, they generally have an ownership interest in the property and are legally responsible for the loan. Before agreeing to become a non-occupant co-borrower, it’s important to understand the responsibilities that come with signing the mortgage.
What Should I Consider?
A non-occupant co-borrower is taking on the same legal responsibility for the mortgage as the occupying borrower. Because of that, the lender will review their income, assets, debts, and credit history. It’s also important to understand that this mortgage may affect the co-borrower’s ability to qualify for future financing.
My Advice
If you’re having difficulty qualifying for a mortgage on your own, don’t assume your homeownership goals are out of reach. A non-occupant co-borrower may be an option, depending on the loan program and your individual circumstances. Speaking with an experienced loan officer early in the process can help you determine whether this solution is right for you.