You can apply for a home loan in a variety of roles, including co-owner, co-borrower, co-applicant, and co-signer. Before deciding in what capacity you will put your name on the home loan, it is critical that you understand the distinction between these terms. Each of these roles will have different legal and financial obligations in terms of home loan repayment, making it even more important to understand it thoroughly and make an informed decision. Here's what you should know about each of these home loan terms.

1. Difference between Co-
Owner, Co-Borrower,
Co-Applicant, and Co-
Signer

2. Co – borrower
A co-borrower in a housing loan is
someone who, along with the principal
borrower, shares responsibility for debt
repayment if the primary borrower fails
to do so. A co-borrower applies for a
loan alongside the primary borrower,
and both parties are legally obligated to
repay the loan.

3. Co-owner
A co-owner is someone who has a legal
interest in the property alongside the
primary borrower. Most banks, financial
institutions, and housing finance
companies require co-owners to become
co-borrowers alongside the primary
borrower.

4. Co-applicant
Loan repayment is shared among co-
applicants. In some cases, a co-applicant
may be a respondent to a home loan to
meet the bank's eligibility requirements.
Only a few specific relationships, such as
brother-brother, father-son, mother-son,
husband-wife, and so on, are permitted to
be added as co-applicants on a home loan.

5. Co-signer
Co-signers are typically used when the
primary borrower does not meet the
requirements for a home loan due to a poor
credit history. Because participation is
required due to the primary borrower's
lower credit rating, the co-signer must have
a strong credit rating. Being a co-signer
may make it more difficult to obtain credit
in the future.

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