A second person who applies for a mortgage alongside the primary borrower, sharing equal responsibility for repayment and appearing on the loan and title.
Full Definition
A co-borrower is someone who applies for a mortgage together with the primary borrower. Both parties' income, assets, debts, and credit scores are considered in underwriting. Having a co-borrower with strong income or credit can help you qualify for a larger loan or a better rate. Co-borrowers are equally responsible for the loan — if one defaults, both credit scores are affected. Co-borrowers typically appear on the property title as co-owners. This is different from a co-signer, who is responsible for the debt but doesn't necessarily own the property. Spouses commonly co-borrow; non-married couples, parents helping adult children, and business partners also use co-borrower arrangements.
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