Co-borrower Law and Legal Definition

A co-borrower is someone in addition to the primary borrower who accepts responsibility for repaying a debt. However, the co-borrower typically does not directly benefit from the loan. A co-borrower may also be referred to as a co-signer, co-applicant. A co-borrower is often used when the primary borrower doesn't meet elgibility requirements for a loan ,such as a poor credit record or insufficient income. A co-borrower's obligations are the same as those of the primary borrower. If the primary borrower does not repay the loan, the co-borrower accepts responsibility for repaying.

Federal law requires lenders to disclose this notice to co-borrowers:



