THE PROS & CONS OF CO-SIGNING FOR A MORTGAGE
- johnathanmcquoid
- Jan 18
- 2 min read
Qualifying for a mortgage has become more challenging than it was 10–15 years ago. Even strong buyers with solid income can find themselves declined today due to strict guidelines, stress test requirements, and documentation rules.
In many cases, people can easily afford the mortgage payment — they just can’t prove it yet. That’s when a co-signer can help.
Here’s everything you need to know 👇
🏠 Who typically needs a co-signer?
A co-signer can help buyers who:
✔️ recently changed jobs
✔️ receive overtime or variable income
✔️ earn tips or commissions
✔️ have limited credit history (“thin credit”)
✔️ are new grads just starting their careers
A strong co-signer can be more valuable to a lender than a larger down payment because they help strengthen income stability and overall creditworthiness.
🤝 What does a co-signer actually do?
A co-signer agrees to take responsibility for the mortgage if the primary applicant cannot make the payments.
To the lender, the co-signer is treated as if they are ALSO responsible for the mortgage, meaning:
✔️ their income must support the debt
✔️ their debts must be reviewed
✔️ their credit must be strong
If the co-signer has their own mortgage, vehicle loan, or other obligations, they must show they can afford both their debts AND your mortgage.
📄 What documents does a co-signer need?
This part surprises a lot of people — co-signers must provide full documentation, including:
✔️ employment letter
✔️ recent pay stub
✔️ credit report
✔️ full income documents (if self-employed)
In many cases, co-signers must provide just as much paperwork as the main applicant.
⚠️ How does co-signing affect THEIR credit?
The co-signed mortgage appears on THEIR credit bureau and counts toward THEIR debt ratios.
This can impact their ability to:
• buy a vacation property
• purchase a new home
• qualify for vehicle financing
• take out new credit lines
It’s very important to discuss this openly before involving a co-signer.
💡 Here’s the part most people don’t know…
You can often remove the co-signer after 12 months of successful on-time mortgage payments — depending on the lender.
Many banks never mention this option, but we make sure clients understand it upfront.
If your long-term goal is to remove the co-signer, let us know and we’ll place you with a lender who allows this after a review of income, credit, and payment history.
It’s a great way to thank your co-signer and free up their borrowing capacity without tying them to your mortgage for 5 years.
💬 Final Thought
Co-signing can be an amazing tool for first-time buyers or anyone rebuilding credit or income stability.
But it must be done carefully — with the right lender, the right structure, and a clear exit plan.
If you’re thinking about using a co-signer, or if you’re a co-signer who wants to understand the risks and options, message The Frontline Mortgage Group. We’ll walk you through the process and help structure the best strategy for everyone involved. 💬