Can You Have Both a Co-Signer and Guarantor on a Mortgage?
It is possible to have both a co-signer and a guarantor on a mortgage, but it's not a common scenario. In most cases, having one or the other is sufficient for securing a mortgage.
A lender may require both in specific situations, such as when the primary borrower and co-signer have bad credit scores or income. However, this arrangement may limit the borrowing capabilities of all parties involved and increase the risk for the guarantor.
Choosing between a co-signer and a guarantor largely depends on your financial circumstances and the level of involvement you'd want from the third party.
A co-signer takes on joint responsibility for the mortgage, helping secure better terms but sharing liability for the loan. Meanwhile, a guarantor solely guarantees to pay the mortgage if the primary borrower defaults, avoiding direct responsibility for monthly payments while still taking on the risk.
Before deciding on either option, it's essential to have open and honest conversations with potential co-signers or guarantors about the responsibilities and risks involve.