Co-Borrowing: Unlock Bigger Mortgages & Save More with reAlpha

When it comes to buying a home, there's a lot to think about: location, price, mortgage rates, and, of course, whether you can actually afford it. But what if you didn’t have to do it all on your own? What if, instead of stretching your finances to their absolute limit, you could join forces with someone you trust-a spouse, partner, best friend, or even a relative? Enter the concept of co-borrowing, a potentially game-changing strategy for many aspiring homeowners.

In this blog, we’ll break down the ins and outs of co-borrowing, show you why it’s perfectly okay (and often a smart choice), and explain how reAlpha makes the process even smoother and more cost-efficient.

Imagine you want a home, but your income alone isn’t quite enough to secure the loan you need. Co-borrowing means teaming up with another person-someone who’s just as invested as you are in making homeownership a reality. Together, you combine your incomes to boost your buying power, allowing you to qualify for a larger mortgage or more favorable loan terms. Pretty smart, right?

The best part? You don’t have to be married to go this route. Whether it’s your spouse, your best friend, or your trusted significant other, lenders are generally open to offering loans to multiple borrowers. In fact, virtually all lending programs allow for this arrangement.

When applying as co-borrowers, lenders will take a close look at your combined income and financials. This is especially important because your debt-to-income (DTI) ratio-the comparison of how much you earn to how much you owe-is one of the most critical factors in determining mortgage approval. Sharing the load with someone else not only strengthens your loan application but also smoothens the path to financial stability.

If you're receiving financial help from a family member or friend for your down payment, you’ll likely need a gift letter for your mortgage. Lenders require this document to ensure the funds are a gift-not a loan that must be repaid.

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Let’s zero in on the DTI ratio for a moment. This calculation is essentially your financial health scorecard, indicating whether you can comfortably manage monthly mortgage payments without getting in over your head.

When you apply for a loan as a co-borrower, lenders combine both incomes to calculate this ratio. The higher your joint income, the more wiggle room you’ll have to secure a home loan-maybe even for that dream home just slightly out of your solo budget’s reach.

Here’s a scenario to illustrate:

Say your personal annual income is $50,000, and your monthly obligations (think car payments, credit cards, etc.) total $1,500. That’s a decent start, but now imagine you team up with a co-borrower earning $60,000 annually. Suddenly, your combined annual income jumps to $110,000, opening the door to better mortgage options and potentially lower interest rates.

Lenders not only evaluate income and debt but also include a mortgagee clause in the loan agreement. This clause defines the lender's rights in case of default, a crucial detail that co-borrowers should understand before signing.

At first glance, co-borrowing might seem straightforward. But let’s not ignore how overwhelming the traditional home-buying process can be: endless paperwork, confusing financial jargon, and competing offers that turn the experience into a stress marathon. This is where reAlpha steps in to simplify the chaos.

Here’s how reAlpha makes homeownership even more accessible:

With reAlpha, you’ll get 3% more toward your home purchase. If you're buying a $500,000 home, that’s $15,000 you didn’t have to save-because reAlpha eliminates the buyer’s agent fees and passes those savings directly to you. You can apply this toward your down payment, giving you even more leverage in competitive markets.

If a traditional 15- or 30-year mortgage doesn’t align with your financial strategy, a 40-year mortgage could be worth considering. It can help lower monthly payments, making co-borrowing even more flexible.

Save up to 1.5% at closing when you buy

Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.

Unlock your savings

Who’s got the time to sift through stacks of listings and financial statements? ReAlpha uses AI to streamline the home-buying process, delivering personalized recommendations faster than you can say “mortgage approval.” Simple, efficient, and built for modern homebuyers.

Buying a home is stressful enough without worrying about hidden costs or complicated contracts. ReAlpha offers "better service than traditional agents"-and it’s all on your terms. No pressure, no obligations.

The prospect of buying a home can feel daunting, but you don’t have to go it alone. Co-borrowing offers a powerful way to increase your financial strength and purchasing power-whether you're partnering with your spouse, a friend, or a family member. And with reAlpha in your corner, you’ll also gain financial flexibility, cutting-edge tools, and a personalized home-buying experience that prioritizes YOU.

So, what are you waiting for? Start exploring your options today with reAlpha. Your dream home is closer than you think-no strings, no stress, no limits.

Co-borrowing can increase affordability, but if you're looking for even lower monthly payments, a recast mortgage could be a smart move. This allows borrowers to reduce payments without refinancing, making homeownership even more manageable.

Turn "Maybe Someday" Into "We Got This"-Own a Home Together!

Struggling to afford a home solo? With co-borrowing, you combine financial strength with a trusted partner, unlocking bigger mortgage approvals and better rates.

• Save 3% more with reAlpha’s AI-powered homebuying.
• Boost your buying power without extra savings
• Get into your dream home faster-together!

Why pay more when you can save thousands? Take the smarter path to homeownership with co-borrowing + reAlpha.