“Co-borrowing” gains traction in the housing market

Larger down payments help buyers avoid paying mortgage insurance

Los Angeles /
Sep.September 13, 2017 11:00 AM

Apparently the old adage “sharing is caring” applies to homes too.

Home buyers are increasingly enlisting co-borrowers when purchasing a home — to help them land a more expensive property, Realtor.com reported.

In the second quarter, 22.8 percent of mortgage purchase applications involved a co-borrower, according to a new report from real estate information provider Attom Data. That’s up from 21.3 percent in the prior quarter and 20.5 percent a year ago.

A closer look also shows home buyers are buying smaller but more expensive properties and doing it with lower rates and more money down.

Co-borrowing has become easier recently with the onset of home-equity sharing programs, such as San Francisco’s Downpayment Assistance Loan Program. Private companies assist buyers with their down payment in exchange for a share of equity.

Demographic characteristics are nowhere to be found on Attom’s report, but data suggests most co-signers are skewed towards first-time homebuyers. [Realtor] – Natalie Hoberman


Related Articles

arrow_forward_ios
The dip in new contracts was also connected to a large drop in new listings (Getty)
LA County listings, signed contracts dip in August
LA County listings, signed contracts dip in August
(iStock)
LA County signed contracts tick down — slightly — in June
LA County signed contracts tick down — slightly — in June
Prices may be pushed up by a lack of inventory (Getty)
SoCal home prices hit another record high in May
SoCal home prices hit another record high in May
Home sales remain strong in Los Angeles County as over 5,500 properties went into contract last month. Inventory, however, is still lagging behind. (iStock)
Another 5.5K LA homes went into contract in May
Another 5.5K LA homes went into contract in May
L.A. County signed contract totals stayed strong in April, but new listings couldn't keep up. (Getty)
LA’s signed contracts in April dwarf new listings
LA’s signed contracts in April dwarf new listings
About 3.5% of LA and Orange Counties homes were 90 days past due in June
In SoCal, “seriously delinquent” mortgages are on the rise
In SoCal, “seriously delinquent” mortgages are on the rise
CAR’s 2020 president, Jeane Radsick
California realtors to federal government: Please drop government-backed mortgage premiums
California realtors to federal government: Please drop government-backed mortgage premiums
California Gov. Gavin Newsom (Credit: Justin Sullivan/Getty Images)
Newsom and the banks strike residential mortgage relief deal
Newsom and the banks strike residential mortgage relief deal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...