Co-Borrowers and Co-Signers The terms “co-borrower” and “co-signer” have different meanings and the distinction is important for Minnesota Housing’s Start Up and MCC first-time homebuyer programs.
A co-borrower will be an owner of the property, signs the mortgage and note and will reside in the property. A co-borrower’s income must be included in the Program Eligibility Income calculation and the co-borrower must sign the Borrower Affidavit. Non-occupant co-borrowers are not permitted.
A co-signer signs the note but not the mortgage, and will not be an owner of the property. Unless the co-signer intends to reside in the property, the co-signer’s income is not included in the Program Eligibility Income calculation and the co-signer does not sign the Borrower Affidavit.
