Perennial Funding > Blog > Mortgages > Benefits of Using a Non-Occupant Co-borrower to Buy a Home

Benefits of Using a Non-Occupant Co-borrower to Buy a Home

When a home buyer meets a lender’s minimum requirements to qualify for a mortgage loan, the approval and funding time frames could flow along quite smoothly. However, certain conditions might cause a borrower to lack the eligibility requirements for a specific home loan. Lending specialists at Perennial Funding may be able to offer a variety of solutions for borrowers who need to explore alternative methods to obtain financing to buy a home.

Obtaining a Mortgage Pre-Approval

Knowing whether a prospective home buyer can secure a mortgage approval is important to sellers, builders and to licensed real estate agents. The reasoning revolves around saving time to search for properties that a borrower is qualified to buy. With a pre-approval in-hand, a borrower has met the initial screening requirements to purchase a home with a specific financing limit.

What Does a Mortgage Lender Consider as a Non-Occupant Co-Borrower?

An additional applicant for a mortgage loan would be consider a co-borrower who intends to live in the subject property. However, a non-occupant co-borrower would provide credit or financial strength to a borrower’s mortgage loan application without the intention of residing within the subject property.

All parties would need to understand that every borrower and non-occupant co-borrower would be responsible for repayment of the mortgage loan.

How Could a Non-Occupant Co-Borrower Help a Home Buyer Qualify for a Mortgage Loan?

Generally, a borrower who can afford to make timely monthly payments might have insufficient credit strength or may not have enough income to document for qualifying purposes. Adding a non-occupant co-borrower who has a sufficient amount of income to cover their own expenses and has the ability to meet the approval conditions for the borrower’s new loan could enable a buyer to secure funding for a home.


When a loan approval is questionable, a borrower who can add a qualified non-occupant co-borrower to a mortgage application might be able to proceed toward the settlement table to complete the financing transaction.

Perennial Funding employs knowledgeable and courteous lending professionals who are delighted to assist borrowers with a variety of home financing challenges. Contact us today to apply for an affordable home loan.

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Perennial Funding LLC, 161 Washington St. Suite 950, Conshohocken, PA 19428

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*By refinancing your existing mortgage your total finance charges may be higher over the life of the loan.

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