Persons who cannot qualify for a mortgage loan on their own merit might consider completing a ***** application with a spouse, fiancé, or family member. ***** application loans are advantageous. Even so, these types of loans involve a certain level of risk.
When two individuals complete a ***** application, the mortgage lender will collect financial and credit information from both applicants, and base loan approval on their overall situation. ***** applications amongst married persons are common. However, a few lenders approve ***** loans to unrelated or unmarried persons. This type of arrangement benefits individuals who cannot qualify for a home loan due to credit problems or insufficient income.
Once two persons complete and submit a ***** application, the mortgage lender will carefully review both parties monthly income, current debts, and credit history. One person might have a few credit issues, but earn enough money to pay the mortgage. Meanwhile, the other applicant may have insufficient income, but have excellent credit. Individually, the persons may not qualify for the home. On the other hand, their ***** application may meet the lender's basic requirements, and justify loan approval. The risk with a ***** application between unmarried people is that one person may decide to stop paying for the loan, or submit late payments. Since both parties are equally responsible for the debt, late or skipped payments will damage both credit ratings.