Origination ActivitiesQuestion 282 of 400
A borrower qualifies with a co-signer (non-occupant co-borrower). How does the co-borrower generally affect qualifying?
a.The co-borrower's income is ignored entirely
b.Only the co-borrower's assets count, not the primary borrower's
c.The co-borrower cannot be held liable for the debt
d.The co-borrower's income and debts are included, and they share legal liability for repayment
Explanation
A non-occupant co-borrower's income and debts are considered in qualifying, which can help the primary borrower's ratios, and the co-borrower is legally liable for repaying the loan. Their contribution is not ignored, and they do share responsibility for the debt.
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