Joint Mortgage

What It Means

A joint mortgage is a residential home loan originated with two or more borrowers — known as Co-borrowers — who apply, qualify, and assume repayment responsibility together. Each co-borrower signs the Promissory Note, which creates a personal obligation to repay the full loan amount under Joint and Several Liability.

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A joint mortgage is the standard financing structure for co-buyers purchasing a property together. It allows co-buyers to combine income and assets for qualification purposes — but it also means every signer is personally liable for 100% of the debt, regardless of their Ownership Share or internal cost-splitting arrangement.

How a Joint Mortgage Works

All co-borrowers on a joint mortgage submit a joint application. The lender evaluates each borrower's credit history, income, debts, and assets. The lowest qualifying credit score in the group typically influences the interest rate and may limit the loan amount — meaning one co-buyer with a lower credit score can affect the terms available to the entire group.

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After closing, the mortgage appears on every co-borrower's credit report. Late payments or default may affect all signers' credit, regardless of which party caused the missed payment. Removing a co-borrower from the mortgage after closing requires Refinancing — lenders do not release individual borrowers from an existing loan.

Why It Matters for Co-owners

A joint mortgage binds co-borrowers financially in ways that extend well beyond their internal agreements. The Co-ownership Agreement governs how co-owners split costs and manage exits, but the lender recognizes only the Promissory Note — under which every signer owes the full balance. If one co-owner stops contributing, the remaining co-owners must cover the shortfall or risk Default on the mortgage itself.

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Co-buyers should understand that not every co-owner needs to be on the mortgage. A co-owner who contributes to the Down Payment but does not qualify as a borrower can still hold an Ownership Share on the Deed without signing the Promissory Note — a structure that must be clearly documented in the Co-ownership Agreement.

Key Points

• A home loan with two or more co-borrowers who apply and qualify together
• Every co-borrower assumes joint and several liability for the full loan amount
• The lowest qualifying credit score in the group typically influences the interest rate and loan terms
• Late payments or default may affect every co-borrower's credit
• Removing a co-borrower after closing requires refinancing the entire loan
• Not every co-owner must be on the mortgage — ownership and borrower status are legally distinct