Who Are Eligible Borrowers For A Mortgage?

Eligible Borrowers

Mortgage lenders define borrowers in numerous ways.

The typical borrower is someone seeking a loan for their own home, either to purchase a new one or refinance their existing property.

Lenders regard borrowers who are living on the property to be primary residence borrowers. These borrowers are usually the least risky for a lender. Since they live in the property they have a strong incentive to continue to make payments.

A second type of borrower is a non-resident borrower. This is someone who is on the loan application but does not live there.

This is a person of greater risk to lend to because they don’t live in the property. They don’t have to make the payment to keep living in the property because they live somewhere else.

Mortgage lenders can often deduce if someone is a non-resident co-borrower. They are unlikely to be living in the property if a person lives far away or another state or if the borrower works very far away from the property the borrower is more likely to be a non-resident borrower.

Some lenders restrict some loans or loan types to people who are in their primary residences only.

A number of lenders will allow a non-occupying co-borrower to be on a loan application.

Borrowers usually seek someone with better credit to assist them get approved for a mortgage loan. Some lenders will not allow this. If you want to add someone to your mortgage, who won’t be living in the property, make sure you disclose this up front so you are not working with the wrong lender.