There are different types of Home Loan Borrowers:

• Principal Borrower is the primary borrower on a loan. They are legally responsible for repaying the loan. Principal borrowers may or may not have co-borrowers, co-makers, or sureties on their loans.

• Principal Borrower’s Spouse is the legally married spouse of the principal borrower. By default, the legally married spouse is also considered the co-borrower on a loan.

• Co-Borrower is someone who shares equal responsibility for the loan with the principal borrower. This means that both borrowers are legally obligated to repay the loan. Co-borrowers are often required to meet the exact creditworthiness requirements as the principal borrower.

• Co-Maker signs a promissory note with the principal borrower, promising to repay the loan if the borrower defaults. However, unlike a co-borrower, a co-maker is typically only liable for the loan if the lender has exhausted all other attempts to collect from the principal borrower.

• Surety is someone who guarantees the performance of another person, such as a principal borrower. If the principal borrower defaults on the loan, the surety is legally obligated to repay the loan on their behalf. Sureties are typically required to post collateral to secure their guarantee.