Home Blog Uncategorized Adding a Co-Borrower: How it Boosts Your Purchasing Power
Adding a Co-Borrower: How it Boosts Your Purchasing Power

Adding a Co-Borrower: How it Boosts Your Purchasing Power


As the real estate market continues to evolve, homebuyers today are finding themselves more and more limited in terms of purchasing power. With soaring home prices and stiff competition among buyers, it’s become increasingly difficult to qualify for a mortgage loan by yourself. However, adding a co-borrower to your loan application can significantly improve your chances of getting approved, not to mention the added benefits that come with it. In this post, we’ll explain what adding a co-borrower does for your purchasing power, and why it might be the key to securing your dream home.

  1. Combining Income

One of the main advantages of adding a co-borrower is the ability to combine your incomes, which can significantly increase your purchasing power. When lenders evaluate your loan application, they take into account your debt-to-income ratio, or the percentage of your monthly income that goes toward debt payments. By adding a second income to the mix, you may be able to lower your debt-to-income ratio enough to qualify for a larger loan amount.

  1. Boosting Credit Scores

Adding a co-borrower can also boost your credit scores, which are another major factor that lenders consider when evaluating your loan application. If your co-borrower has a higher credit score than you do, it can help offset any weaknesses in your credit history and improve your overall creditworthiness. This, in turn, can make it easier to get approved for a better rate and terms.

  1. Reducing Risk

Adding a co-borrower can also reduce the lender’s risk by spreading the responsibility for paying back the loan between two people. This can be particularly beneficial if one borrower has a higher risk profile, such as a lower credit score or a higher debt-to-income ratio. By adding a co-borrower with stronger financials, you can offset any weaknesses and increase the chances of approval.

  1. Sharing Equity and Appreciation

Adding a co-borrower also means sharing equity and appreciation with another person. If you decide to sell or refinance your home down the line, you’ll have to share the profits with your co-borrower. However, this can also work in your favor if your co-borrower is someone you trust, such as a spouse or family member. Sharing equity and appreciation can help you both build wealth over time, and can also make it easier to afford future purchases or investments.

  1. Accessing Better Loan Programs

Finally, adding a co-borrower can also give you access to better loan programs that you might not qualify for on your own. For example, some FHA loans require a certain level of income and credit scores. If you fall short, you might not qualify; but by adding a co-borrower with stronger financials, you may be able to meet the requirements and secure the loan. This can save you thousands of dollars over the life of the loan and make homeownership more affordable for you and your co-borrower.


Adding a co-borrower to your mortgage application can have a big impact on your purchasing power, creditworthiness, and financial security. By combining incomes, boosting credit scores, reducing risk, sharing equity and appreciation, and accessing better loan programs, you can set yourself up for success and secure your dream home faster and easier than you ever thought possible. So if you’re struggling to qualify for a mortgage loan on your own, consider adding a co-borrower and take advantage of all the benefits that come with it.

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