What is the Difference from a Co-Borrower and a Cosigner?
When applying for a loan there may be an opportunity to add a co-signer or co-borrower. While they may sound the same, they are not. A co-borrower is obligated on the loan they are on and assumes responsibility for the payment. Also, in both cases the payments made are reported to the credit bureaus for both parties.
A co-signer is only obligated to make the payment if the primary borrower does not make the payment. Co-signers are not as prevalent in the marketplace.
When applying for a home loan only a co-borrower is allowed.
As always, work with a mortgage professional to obtain the best advice such as the Home Loan Advisors at Hall Financial.