Difference between CoOwner, Co-Borrower, CoApplicant, and Co-Signer Co – borrower
Co-owner
A co-borrower in a
A co-owner is someone
housing loan is someone
who has a legal interest
who, along with the
in the property
principal borrower,
alongside the primary
shares responsibility for
borrower. Most banks,
debt repayment if the
financial institutions,
primary borrower fails
and housing finance
to do so. A co-borrower
companies require co-
applies for a loan
owners to become co-
alongside the primary
borrowers alongside
borrower, and both
the primary borrower.
parties are legally obligated to repay the loan.
Co-applicant
Co-signer
Loan repayment is
Co-signers are typically
shared among co-
used when the primary
applicants. In some
borrower does not meet
cases, a co-applicant
the requirements for a
may be a respondent to a
home loan due to a poor
home loan to meet the
credit history. Because
bank's eligibility
participation is required
requirements. Only a few
due to the primary
specific relationships,
borrower's lower credit
such as brother-brother,
rating, the co-signer
father-son, mother-son,
must have a strong
husband-wife, and so on,
credit rating. Being a co-
are permitted to be
signer may make it more
added as co-applicants
difficult to obtain credit
on a home loan.
in the future.
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