What is the difference between a guarantor, co-signer and non-occupant borrower?

Definitions

Guarantors and co-signers are credit applicants who

• do not have ownership interest in the subject property as indicated on the title;
• sign the mortgage or deed of trust note;
• have joint liability for the note with the borrower;
• do not have an interest in the property sales transaction, such as the property seller, the builder, or the real estate broker; and
• meet the requirements in B2-2-01, General Borrower Eligibility Requirements, except for the provisions related to establishing an ownership interest in the property. B2-2-01, General Borrower Eligibility Requirements

Non-occupant borrowers are credit applicants on a principal residence transaction who

• do not occupy the subject property;
• may or may not have an ownership interest in the subject property as indicated on the title;
• sign the mortgage or deed of trust note;
• have joint liability for the note with the borrower(s);
• do not have an interest in the property sales transaction, such as the property seller, the builder, or the real estate broker; and
• meet the requirements in B2-2-01, General Borrower Eligibility Requirements, except for the provisions related to establishing an ownership interest in the property.

Note:: Guarantors, co-signers, and non-occupant borrowers are permitted on purchase, limited cash-out and cash-out refinance transactions.