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