The Dottie & Kate Team
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Cosigner/Co-Borrower

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“Cosigner” and “co-borrower” are often used interchangeably, and for the most part, they are the same thing. There are a few instances in which they are different, especially if you are trying to get a loan from the Federal Housing Administration.

Otherwise, they are virtually identical. A cosigner/co-borrower is someone who
agrees to be on the mortgage with the primary borrower. They are not on the title of the property, but are on the mortgage. This is useful for a borrower who has a short or weak credit history.

While being a cosigner can be helpful to a friend or family member, it can also have a major impact on your own finances. If the primary borrower misses a payment, the bank can come after the cosigner for the money. The missed payment also shows up on the cosigner’s credit history.

For a mortgage from the Federal Housing Administration, a co-borrower does get named on the title of the property and has a full credit check run on them. They must also sign the security instrument -- i.e., collateral. Usually, the deed to the house is used as the security instrument. Cosigners for FHA loans also have credit checks run, but they do not have to sign the security instrument.
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Being a cosigner/co-borrower is a big responsibility, and not a step that should be taken lightly. An experienced real estate agent can advise you on your options, including whether or not you need a cosigner or if you can get the mortgage on your own.
Dottie Toney                                                                                                                                                                                                                       Kate Swarthout
Keller Williams Realty                                                                                                                                                                                       Keller Williams Realty

Cell:
770-715-0512                                                                                                                                                                                                        Cell: 770-715-0612
Email: dottietoney@kw.com                                                                                                                                                                      Email: kateanne@kw.com
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  • Home
  • Find a home
  • Featured Properties
    • 225 Late Rise Rd Monticello Ga
    • 120 Friddell Rd
    • 1600 A Hwy 81
    • 1809 Stark Rd
    • 13759 Woolsey Rd
    • 225 Tussahaw Ln
    • 469 Parker Rd
    • 267 McDonough Rd
    • 1600 B Hwy 81
    • 115 June Court
    • 332 Roberts Point Road
    • 7625 Wright Circle
    • 695 Moreland Road
    • 2551 Hidden Hills Drive
    • 110 Walnut Ridge Way
    • 108 Greenland Drive
    • 29 Highland Circle
    • 521 Blue Cedar Court
    • 779 Crumbley Road
    • 2933 Old Snapping Shoals
    • 171 W Nuthatch Drive
    • 118 Bell Road
  • Home Staging
  • RESOURCES
    • Blog
    • Selling Tips
    • Locations
    • FAQ
    • Real Estate Glossary
  • Contact
  • 1809 Stark Rd