Can You Get a Cosigner For A Mortgage?

Man confirm mortgage contract (estate agency client sign contract)

After searching for months, you’ve finally found the perfect home. The problem is that you’re having a difficult time qualifying for a mortgage. Should you just wait to buy? No, not necessarily. Doing so might mean that you will miss out on getting a good deal on the perfect home.

Although a rejection might leave you feeling dejected and ready to give up, it is important not to get discouraged. If you fall short on the qualifications needed for a mortgage, a cosigner might be able to help.

A co-signer is a person who does not own your home but they are listed on the mortgage. A co-signer can help you get a mortgage loan because their assets and income are taken into account when a lender looks at your loan application. A co-signer will be legally responsible to pay the mortgage if you cannot. So, how do you know if a co-signer will help? Here are some of the most common scenarios where a co-signer can be helpful:

  • New homeowner – If you are a young professional just out of college, you might not yet have the credit history or income history to qualify for the mortgage. If you just landed a great job but lack credit or income history, then a co-signer might help.
  • Self-employed borrowers – Due to complicated tax laws and credits for business owners, many self-employed people’s income on their tax returns don’t represent what they actually bring in. This makes it hard for them to qualify for a mortgage. With a cosigner, a self-employed person may have a better chance of getting a mortgage.
  • Divorcee – Some divorcees use co-signers to help them take over their home mortgage after a divorcee. Transferring a home mortgage to a single borrower is not always easy, but a co-signer can certainly help.

If you are unsure of whether or not you would qualify for a mortgage or have been turned down by another lender, contact Midland Mortgage Corporation. We can help you determine if a co-signer would be right for you.

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