Looking for Co-Applicant for your Home Loan?
Jul 23, 2019 Home Loan
Buying a house is a dream and having a co-applicant helps in making sure the dream comes true. Having a co-applicant helps in sharing the loan burden and if you fail to make a single payment, you know there’s your co-applicant to cover for the same.
Before signing the co-applicant for the home loan, there are something’s the applicants must know. We list down everything one should know about it.
Who are the co-applicants?
Co- applicants are those who apply for the home loan along with the main applicant. There are two types of home applicants: one whose income is counted in giving out the home loan and another one whose income is not counted while giving out the home loan. All the co-owners must be the co-applicants mandatorily. However, all co-applicants cannot be co-owners.
If you are a partner in the partnership firm, then your income is considered for the home loan without the consent from the other partner in your firm.
For the director of the company, home loan eligibility assessment must be done for all the directors with more than 3/4th shares in the company. It does not matter if the co-applicant is the co-owner or not, the assessment is mandatory.
For the home loan to the NRIs, the co-applicants are unavoidable.
The incomes of the applicants are mentioned in the application and then the obligation of a monthly instalment is decided. The income of the parents, children and siblings can be clubbed together for the co-applicant application. However, if they are co-owners, many banks do not allow clubbing the income for a home loan.
1. Spouses:
Spouses can be the home loan applicants even if they are not the co-owners. The home loan tenure is determined by the retirement age of the older partner. The income can be combined to increase the home loan budget.
2. Siblings:
Two brothers can take the home loan if only they are living in the same property and are the co-owners of the property. a brother and sister cannot be co-applicants for the home loan.
3. Father and son:
A father and sons can be co-applicants for the property. The limit for the home loan is determined by the retirement age of the father if his income is accounted for the loan. if the father has more than one son, then the property is considered to be father’s for obvious reasons.
4. Father and unmarried daughter:
The unmarried daughter can apply for a home loan with her father given the property is solely is in her name to avoid any dispute after she gets married.
5. Mother and unmarried daughter:
The unmarried daughter can apply for the home loan with her mother but the property should be in the name of the daughter while the mother’s income is not calculated.
6. Son and mother:
A son and mother can be co-applicants for the home loan when the father is no more. The son and mother are joint applicants when a mother is still working and a joint owner of the property.
7. Friends and relatives:
The banks and financial institutes do not allow people who are not blood-related to be co-applicants for the home loan.
Before you sign up as the co-applicant, know why you are signing as one. a co-applicant has a huge responsibility, both financial and otherwise. Know what you are getting yourself into and it is advised to not fall into peer pressure.
Before signing the co-applicant for the home loan, there are something’s the applicants must know. We list down everything one should know about it.
Who are the co-applicants?
Co- applicants are those who apply for the home loan along with the main applicant. There are two types of home applicants: one whose income is counted in giving out the home loan and another one whose income is not counted while giving out the home loan. All the co-owners must be the co-applicants mandatorily. However, all co-applicants cannot be co-owners.
If you are a partner in the partnership firm, then your income is considered for the home loan without the consent from the other partner in your firm.
For the director of the company, home loan eligibility assessment must be done for all the directors with more than 3/4th shares in the company. It does not matter if the co-applicant is the co-owner or not, the assessment is mandatory.
For the home loan to the NRIs, the co-applicants are unavoidable.
The incomes of the applicants are mentioned in the application and then the obligation of a monthly instalment is decided. The income of the parents, children and siblings can be clubbed together for the co-applicant application. However, if they are co-owners, many banks do not allow clubbing the income for a home loan.
1. Spouses:
Spouses can be the home loan applicants even if they are not the co-owners. The home loan tenure is determined by the retirement age of the older partner. The income can be combined to increase the home loan budget.
2. Siblings:
Two brothers can take the home loan if only they are living in the same property and are the co-owners of the property. a brother and sister cannot be co-applicants for the home loan.
3. Father and son:
A father and sons can be co-applicants for the property. The limit for the home loan is determined by the retirement age of the father if his income is accounted for the loan. if the father has more than one son, then the property is considered to be father’s for obvious reasons.
4. Father and unmarried daughter:
The unmarried daughter can apply for a home loan with her father given the property is solely is in her name to avoid any dispute after she gets married.
5. Mother and unmarried daughter:
The unmarried daughter can apply for the home loan with her mother but the property should be in the name of the daughter while the mother’s income is not calculated.
6. Son and mother:
A son and mother can be co-applicants for the home loan when the father is no more. The son and mother are joint applicants when a mother is still working and a joint owner of the property.
7. Friends and relatives:
The banks and financial institutes do not allow people who are not blood-related to be co-applicants for the home loan.
Before you sign up as the co-applicant, know why you are signing as one. a co-applicant has a huge responsibility, both financial and otherwise. Know what you are getting yourself into and it is advised to not fall into peer pressure.
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