I have spent much of December and January talking with potential homeowners. Many clients have contacted me to start looking at numbers and getting documentation together so that they can jump into the Spring (it now starts in February!) homebuying market.

Last week, I met with one person who, once we looked at numbers, realized that she could not qualify to buy a home in a neighborhood and price range that she wanted to be in. She receives a sizeable gift from her parents each year, so she was not concerned about being able to afford the payment, she just did not qualify.

Adding a Co-signer

So, we talked about adding a co-signer or non-occupant borrower to the loan. The difference between a co-signer and a non-occupant borrower has to do with ownership. In both cases, the additional person is on the mortgage and we use their income (and debts) combined with the occupant borrower to see if they qualify for the mortgage. However, a co-signer does not have an ownership interest in the home, but the non-occupant borrower does go on the title.

In my client’s situation, her sister was willing to help her qualify, and they decided it would be better for her to also be on the title of the future home. I met with her sister and with her income and little debt, she made the difference in my client’s ability to qualify for a home in the neighborhood she wanted to be in. Please contact me if you think you might be ready to buy a home in 2025.