How Do You Remove a Co-Signer or Co-Borrower From Your Mortgage?

To remove a co-signer or co-borrower, the lender must first determine whether you can qualify for the mortgage on your own, based on your income, credit, and overall financial situation.

If you are essentially keeping the same mortgage amount and amortization, we can explore a mortgage transfer/subrogation. If you need to increase the mortgage amount—for example, to access equity or consolidate debts—we would instead be looking at a refinance.

What Happens if the Bank Refuses?

Here’s an example.

Your brother-in-law and his wife want to buy their own home. They have the down payment, income, and good credit… but they don’t qualify because your brother-in-law co-signed your mortgage three years ago.

You try to remove him from your mortgage, but your bank refuses because of your credit or current financial situation.

Suddenly, the situation becomes stressful for everyone, especially if they need their borrowing capacity back to purchase their new home.

A refusal from your bank does not necessarily mean you have to sell your home.

Through alternative B and private mortgage lenders, it may be possible to restructure the financing and remove the co-signer from the mortgage.

The goal: you keep your home, and your co-signer regains their borrowing capacity to purchase theirs.

If this sounds like your situation, or you know someone who could benefit from our help, take a few minutes to complete our online form.

We’ll put our 10+ years of experience in alternative and private mortgage financing to work and explore the solutions available to you.