How Many People Can Be On a Mortgage?
There are plenty of reasons a pair may want to co-own a property’s mortgage, whether they’re partners or just roommates. They may even want several people to take responsibility for the home’s mortgage repayments, but what are the rules about how many people can be a mortgage at once?
For the curious and those wanting to share the mortgage burden with those who share their home, here’s more from Altitude Home Loans, top-notch mortgage lenders in Tucson, AZ.
How Many People Can Be on a Home Loan Together?
There is no inherent mortgage applicant limit, but lenders’ mortgage applicant eligibility requirements will often complicate matters. If you and three of your friends would like to buy a house together, no mortgage co-applicant capacity rule can stop you. The real question is whether each of you has the credit history and financial means for the process to go through.
The approval process, especially for multiple people, comes with its own hurdles. While there’s no legal limit to your mortgage applicant count, more than four borrowers on a mortgage loan is rare. Conventional loans are less stringent about putting four maximum borrowers on mortgage loans, but for a higher mortgage co-signer allowance, you’ll likely need to manually underwrite the mortgage yourself.
So, if you’re wondering how many people can be on a mortgage, you have your official answer—as many as you want. The primary benefit of multiple names on a mortgage is the cost-sharing, which gives each title deed holder more financial flexibility. Still, the challenges of a four-way co-ownership can be fearsome, so seek expert mortgage advice beforehand.
What’s The Difference Between a Co-Borrower and a Co-signer?
The difference between a co-borrower and a co-signer on a mortgage comes down to ownership. While both parties will have a responsibility toward making the mortgage payments, only a co-borrower owns the property. A co-signer isn’t on the deed, and while this doesn’t make much of a difference in what these participants do each month, it makes a tremendous difference to other things like tax and credit.
Both co-borrowers and co-signers will pay on the mortgage. There’s also the same evaluation process for these parties, alongside the same financial responsibilities. If either a co-borrower or a co-signer falls behind on the mortgage repayments, the consequences will be the same from a legal perspective.
Work With Altitude Home Loans For Your Home Buying
If you’re considering a loan, why not consider working with a local mortgage lender that you can trust? Altitude Home Loans is an expert source of information and assistance for your home purchasing, home refinancing, and loan affairs. Whether this is your first time buying a property or you’re trying to refinance one, our exemplary services can help.
How many people can be on a mortgage in your state? For these answers and much more, reach out to the industry professionals at Altitude Home Loans. Find out more about your potential future home loan options when you call 520-500-1010!