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CO-SIGNER POLICY: HELPING YOU SECURE YOUR LEASE
Securing a lease can sometimes require additional support, and that's where a co-signer comes in. Understanding the role and responsibilities of a co-signer can be a vital part in a successful lease application. In this informational guide, we have broken down everything primary applicants need to know about incorporating a co-signer into their lease agreement.
What is a co-signer?
A co-signer is an individual who agrees to take on the financial responsibilities of a lease agreement if the primary tenant is unable to meet them. This means that they guarantee to cover rents, late fees, service charges, or any other financial liabilities that might be incurred during the tenancy period.
When is a Co-signer Required?
A co-signer may be required when:
- The primary applicant's monthly household income is less than three times the rent.
- The primary applicant has a credit score below 600.
- Other shortfalls from the published approval criteria.
Co-signer Qualification Requirements:
- Income Verification: The co-signer's gross monthly income (pre-tax) should be at least 3x the combined amount of their own monthly housing expense and the rent for the tenant's chosen property. This ensures the role of a co-signer doesn't lead to financial strain. All income must be verifiable and from individuals who meet or exceed our credit requirements. The primary applicant's income will be included in this calculation if their credit score exceeds 600.
- Credit Check: A FICO score of 600 or higher is required. We seek credit history that demonstrates sound financial behaviors, such as timely payments and manageable credit usage.
- Background Verification: There should be no evictions, foreclosures, unpaid judgments, or convictions involving fraud or crimes against property.
Application Process
Co-signers will need to submit an application where the following details will be verified:
- Income: Through documents such as recent pay stubs, W-2 or tax Form 1040 (two years if self-employed).
- Housing Expenses: Current lease agreement or recent mortgage statements and other relevant documents depending on whether they rent or own their residence.
For a smooth application process, co-signers should ensure that no fields are left blank and necessary attachments are included.
Getting Started
If you believe that having a co-signer would bolster your lease application, you can guide potential co-signers to submit their application through our online portal using the same application link that you used for your application (they can also go on your initial application as a co-applicant).
Remember to communicate clearly about the responsibilities and requirements to prevent any complications in the future.
For any further assistance or questions, feel free to contact us at any time. We're here to facilitate a seamless leasing process for you.