Difference between Co-Owner, Co-Borrower, Co-Applicant, and Co-Signer.

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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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