What is the difference between applicant and co applicant

But the reverse need not always be true. All co-applicants need not necessarily be co-owners. Co-applicant is a person who applies along with the borrower for a loan. A coborrower along with the primary borrower accepts responsibility for repaying a debt. Since co-owners of a property should necessarily be co-applicants , one can include spouse as a co-applicant for a loan.

In most cases, only your immediate relative is considered for a joint loan application like a parent or even brother in some cases. Usually, husband-wife , father-son or mother-son apply for a joint loan. Banks do not encourage friends or distant relative as a co-applicant for a home loan. A coapplicant becomes equally liable for repayment of the loan amount in case of default by the primary applicant. Since his spouse does not earn, Mahesh has to make loan repayments from his salary.

Will he be eligible for tax benefits as monthly EMI repayments will be deducted from his bank account? In the first place both Mahesh and his wife have to be co-applicants for the loan. If Mahesh is neither the owner nor the co-owner of the apartment, he will not be entitled for any tax benefits on the loan repayments. A co-applicant who is not a co-owner is not entitled to tax benefits on home loans. An IT certificate will be issued in the name of both applicant and co applicant at the end of a financial year.

Depending on their share of contribution towards loan repayment, the co-borrowers can claim tax benefits. Before participating in a loan by playing any of the above mentioned roles, know your responsibilities and accountabilities beforehand. Sign any document after consulting a legal expert. Skip to content. Was this article useful? Related Posts How to claim tax benefits on joint home loans. It can be tough to reach your goals alone.

Adding another person to your application can give you the boost you need. A co-applicant is someone who applies with you, giving underwriters an extra profile to consider as they decide whether to approve you for home financing.

Read on to learn whether adding a co-applicant is the right next step for you. Lots of forms of financing accept co-applicants, including home loans, car loans, commercial property loans, and personal loans. Some alternatives to traditional home loans, like financing with Noah, also accept co-applicants. Co-borrowers share equally with you on financing terms. In parts of California, more than half had a co-borrower!

Both people take on responsibility for making regular payments, and both have an ownership claim on the house. Our underwriters give both co-applicants equal consideration. Co-signers are acting as a guarantor. In , people getting a new mortgage had an impressive median score of If you default on a loan , though, debt collectors can demand that your co-signer pay the debt.

Even if you file for bankruptcy, your co-signer may still be on the hook to pay. Ultimately, what you need to decide with your co-applicant is: Who will have access to the funds after approval? Who will be responsible for making any required payments on time? Being clear from the start will help you both feel more comfortable moving forward. You can use a home loan eligibility calculator to know the eligibility of the loan amount if you are applying with a co-applicant and this will let you know how many EMIs you can afford.

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