Why use a non occupying co-borrower or a co-buyer to buy a home.

A non occupying co-borrower is a person that is on the mortgage but does not live in the house. He or she can be a family member or friend who will co-sign with you on your mortgage so you can buy the home.

A non occupying co-borrower is not used to improve the qualifying credit score on a mortgage. An non occupying co-borrower is only used to improve your debt ratios or show more income. Some examples of when a non occupying co-borrower is used are as follows: Parents co-sign for their children who may not have any income coming in because they are still in school or the income is not verifiable. Other family members or close friends co-signing to help improve the income needed on a loan.