Getting approved for a mortgage isn’t always easy—especially if you’re working to build your credit or boost your income. That’s where a co-borrower or co-signer can help.
While both can strengthen your mortgage application, they serve different purposes. Let’s break down how each works, what their responsibilities are, and how to know which is the right option for your situation.
What Is a Co-Borrower?
A co-borrower is someone who applies for the mortgage with you. They share equal responsibility for the loan and usually co-own the home. Lenders consider both applicants’ credit, income, and assets during the approval process.
Co-borrowers are common in situations like:
Spouses buying a home together
Parents and adult children co-owning a property
Business partners investing in real estate
Key responsibilities:
Legally obligated to repay the loan
Listed on the mortgage and the property title
Shares in the rights, equity, and liabilities of the home
Learn more about applying for a joint mortgage
What Is a Co-Signer?
A co-signer helps you qualify for a loan by adding their strong credit and financial history to your application—but they do not own the property or live in it.
Co-signers are often used when a borrower doesn’t qualify on their own due to:
Limited credit history
Low income
High debt-to-income (DTI) ratio
Parents, close relatives, or trusted friends may co-sign to help someone secure financing—but their only role is to guarantee the loan gets repaid if you can’t.
Key responsibilities:
Not listed on the property title
Doesn’t live in or use the home
Still legally responsible if the borrower defaults
Explore mortgage options for low credit borrowers
Co-Borrower vs. Co-Signer: Side-by-Side Comparison
| Attribute | Co-Borrower | Co-Signer |
|---|---|---|
| Ownership in the home | Yes (typically) | No |
| Listed on the mortgage | Yes | Yes |
| Listed on the title | Usually | No |
| Use of the property | Yes | No |
| Financial responsibility | Full and equal | Responsible only if borrower defaults |
| Credit impact | Reported on credit report | Also reported, impacts credit |
Pros & Cons of a Co-Borrower
Pros:
Shared ownership and equity
Stronger loan application with combined income
Shared monthly mortgage payments and expenses
Cons:
Both parties must agree on refinancing or selling
Can strain the relationship if financial disagreements arise
Pros & Cons of a Co-Signer
Pros:
Helps you qualify without giving up ownership
No need for shared decisions on the property
Cons:
Still legally liable for the loan
Affects their credit and debt profile
May complicate their ability to qualify for other loans
Ownership Rights and Legal Considerations
If the home has a title (which it usually does), only those listed on the title have ownership rights. Co-borrowers are generally on the title, while co-signers are not.
Some states, including Nevada, recognize community property laws, which can impact ownership even if one spouse isn’t on the title. Always consult with your loan officer about your state’s regulations.
Which One Should You Choose?
Choose a co-borrower if you want shared ownership and both parties are invested in the property.
Choose a co-signer if you simply need a boost in your credit or income to qualify, but the other party won’t live in or co-own the home.
Your lender will still review both individuals’ credit scores—and in many cases, the lowest median score is used when determining eligibility.
Final Thoughts: Teaming Up on Your Mortgage Application
Whether you’re applying with a co-borrower or need a co-signer to help you qualify, both options can open doors to homeownership.
At V.I.P. Mortgage Las Vegas, we’re here to walk you through your best options and ensure every borrower—primary or supporting—is confident in their role and responsibilities.
Start your application today or schedule a consultation with one of our local loan experts.
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