For some first-time buyers, electing to purchase with the help of a non-occupant co-borrower is their ticket to homeownership.

Today I’ll address the topic of non-occupant co-borrowers and how you can benefit from it. 

During my conversations with many first-time buyers, I’m often reminded of just how daunting it can be for them to take the plunge into homeownership—whether because of their debt-to-income ratio or they have insufficient assets to cover the down payment or closing costs. 

Some buyers have family members, usually their parents, who are willing to lend a hand in their purchase. Many times, the parent(s) will buy the property outright for their child. In that case, the home is considered an investment property, which is markedly different than if the home were treated with non-occupant co-borrower status.   

“A home purchase accomplished via a non-occupant co-borrower is a great way to sidestep some of the setbacks to homeownership and get a leg up in life.”

But for the sake of this hypothetical, let’s say the parent(s) are the non-occupant co-borrower. They’re treated as such because they don’t reside in the property, yet their income and assets can be used to supplement that of their adult child’s. 

A home purchase accomplished via a non-occupant co-borrower is a great way to sidestep some of the setbacks to homeownership and get a leg up in life. 

We at Guardian Mortgage are no strangers to this method of home buying and would be happy to assist you through the process. If you’re interested in this or have further questions, please reach out to us. We’d be honored to help you realize your real estate goals in this way!