What Is a Co-Signer, and When Might I Need One
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. A Co-Signer Is Someone Who Agrees to Take Responsibility for Your Loan
A co-signer is someone who signs the loan agreement along with you and agrees to take responsibility for the mortgage if you’re unable to make the payments.
Most often, a co-signer is a family member or close friend
The co-signer’s credit score and income are considered by the lender in addition to yours
If you miss a payment or default, the co-signer is legally responsible for the debt
While it’s a helpful solution, it’s a serious commitment for your co-signer. Make sure they understand the potential consequences.
2. You Might Need a Co-Signer If Your Credit or Income Isn’t Strong Enough
If your credit score or income is too low to qualify for a mortgage, a co-signer can help you:
Secure a lower interest rate
Get approved for a higher loan amount
Increase your chances of getting approved in a competitive marketA co-signer essentially adds their financial strength to your application, giving the lender more confidence.
3. Co-Signing Is a Big Responsibility—Understand the Risks
Before asking someone to co-sign for you, it’s important to: Discuss the risks and potential impacts on both parties’ credit scores
Set clear expectations for communication and payments to avoid misunderstandings Ensure that everyone involved understands the long-term commitment of co-signingRemember, co-signing is more than just a formality—it’s a shared responsibility. Both you and your co-signer’s credit are on the line.
Considering a Co-Signer for Your Loan? Let’s Make Sure You’re Ready
Download our free “Co-Signer Agreement Guide” — includes questions to ask and things to discuss before moving forward Chat live now if you have concerns about co-signing or want to learn about other financing options
Schedule a call with a Stairway Mortgage advisor to explore loan options that work for you and your co-signer
At Stairway Mortgage, we guide you through the tough decisions—
so you and your co-signer can move forward with confidence.
Ready to Take Your First Step?
Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.
- Takes just 5 minutes
- Tailored results based on your answers
- No credit check required
Need a Pre-Approval Letter—Fast?
Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.
- Only 2 minutes to complete
- Quick turnaround on pre-approval
- No credit score impact
Got a Few Questions First?
Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.
Schedule a CallRelated Posts
1. A Co-Signer Is Someone Who Agrees to Take Responsibility for Your Loan
A co-signer is someone who signs the loan agreement along with you and agrees to take responsibility for the mortgage if you’re unable to make the payments.
👨👩👧👦 Most often, a co-signer is a family member or close friend
💳 The co-signer’s credit score and income are considered by the lender in addition to yours
⚖️ If you miss a payment or default, the co-signer is legally responsible for the debt
While it’s a helpful solution, it’s a serious commitment for your co-signer. Make sure they understand the potential consequences.
2. You Might Need a Co-Signer If Your Credit or Income Isn’t Strong Enough
If your credit score or income is too low to qualify for a mortgage, a co-signer can help you:
📉 Secure a lower interest rate
📝 Get approved for a higher loan amount
💵 Increase your chances of getting approved in a competitive marketA co-signer essentially adds their financial strength to your application, giving the lender more confidence.
3. Co-Signing Is a Big Responsibility—Understand the Risks
Before asking someone to co-sign for you, it’s important to:
⚖️ Discuss the risks and potential impacts on both parties’ credit scores
💬 Set clear expectations for communication and payments to avoid misunderstandings
📝 Ensure that everyone involved understands the long-term commitment of co-signingRemember, co-signing is more than just a formality—it’s a shared responsibility. Both you and your co-signer’s credit are on the line.
Considering a Co-Signer for Your Loan? Let’s Make Sure You’re Ready
📘 Download our free “Co-Signer Agreement Guide” — includes questions to ask and things to discuss before moving forward
💬 Chat live now if you have concerns about co-signing or want to learn about other financing options
📞 Schedule a call with a Stairway Mortgage advisor to explore loan options that work for you and your co-signer
At Stairway Mortgage, we guide you through the tough decisions—
so you and your co-signer can move forward with confidence.