For many borrowers, buying a home is a collaborative process. Whether you’re purchasing with a spouse, partner, family member or trusted individual, going through your homebuying journey with a co-borrower can be a helpful way to make your dream of homeownership a reality.

However, it’s important to understand what responsibilities come with having a co-borrower so you can move forward with clarity and confidence. Here’s what to consider when buying a home together.

What Is A Co-Borrower?
A co-borrower is someone who applies for a mortgage alongside you and shares responsibility for the loan (regardless of how household finances are managed). Both borrowers are listed on the mortgage and their financial information is considered together as a package deal for the loan approval process.

Why Choose To Purchase With A Co-Borrower?
There are several reasons to buy a home with someone else. Doing so could mean increased purchasing power due to combining incomes, allowing you to qualify for a higher loan amount. You share responsibility with the co-borrower by splitting costs, making payments more manageable. There may be easier qualification requirements as well, since a co-borrower’s financial profile can strengthen mortgage applications. Also, buying a home with someone else can be an excellent way to build a future together.

In short, having a co-borrower can make homeownership more accessible and that’s – ultimately – a win.

How Are Credit And Income Evaluated?
When applying with a co-borrower, both financial profiles are reviewed. This would include income, credit history, existing debts and assets. The lower credit scores or high debts from either borrower can impact loan terms. It’s helpful for both parties to review their financial picture ahead of time to see how they may affect their application.

Remember: Each borrower is equally responsible for the full loan amount and any late or missed payments will impact both parties.

What Scenarios Should Be Considered?
Purchasing a home is a weighty commitment. Consider how expenses will be divided, what happens if one borrower moves out, and how decisions about selling or refinancing will be handled. Addressing these concerns early in the process will ensure you are prepared for whatever comes your way.

Co-borrowers can help open the door of homeownership to you, but it’s an option that works best if everyone involved is prepared for the journey ahead.

The reality is, not every co-borrower situation is going to be identical. Loan programs have their own requirements, and some options may be better suited to your situation than others. Contact one of our trained Home Loan Experts to get clarification on the path that suits you best.

Looking to start your journey home? The options and benefits available may surprise you!

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*As a member of the AmeriHome family, borrowers are part of the AmeriPurchase+ program and qualify for a $750 lender credit for all of your home purchases done with AmeriHome, for any property you own. Credits will be applied only if your loan closes with AmeriHome. This offer can not be combined with any other offers and is not applicable for FHA Streamline, or VA IRRRL Refinance transactions. Other restrictions may apply. Terms and conditions are subject to change. The AmeriPurchase+ program is subject to termination without notice.