Who can be co-applicants on a joint home loan?

If you wish to take out a house loan, enlisting a co-applicant is a good idea because shouldering the financial burden alone for 15-20 years might be difficult. You may be financially secure now, but because a house loan is a long-term commitment, you must be future-oriented and prepare properly. This is especially important now, when the COVID-19 epidemic has blown things out of proportion and has significantly harmed the employment market. According to estimates, almost 12.2 crore individuals have lost their employment in India in the previous five months alone. Financial institutions have also been more cautious and are re-examining outstanding home loan applications by requesting applicants’ most recent pay stubs in order to avert bad debts. Nevertheless, not everyone is eligible to be a co-applicant. Certain ties with banks and housing finance companies (HFCs) qualify as co-applicants with the borrower.

• Spouse

Despite considering that they are not co-owners, a husband and wife can be co-applicants. Both partners’ income might be added to boost house loan eligibility. The loan period, however, is governed by the age of the elder spouse.

• A father and his son

A father and son are both eligible for a joint house loan, and their salaries can be combined to determine loan eligibility. Furthermore, if the father has just one kid, he can co-own the land.

In the event of two or more sons, the father can only be a co-applicant but cannot share ownership rights since upon his death, the portion of his property passes to all his sons, which may lead to conflicts.

• Mother and her son

In the absence of the father, a son and mother might be co-applicants for a house loan. Furthermore, they might be joint proprietors of the property.

• Siblings

Brothers who live together can qualify for a combined mortgage, but they must also be co-owners. Sisters, on the other hand, have been excluded from the list of co-applicants. A brother and sister, or two sisters, cannot be co-applicants for a combined house loan, shares, or Goenka.

• Father and unmarried daughter

An unmarried daughter may apply for a loan in conjunction with her father. To prevent legal issues after the daughter’s marriage, the property should be in the name of just one applicant, and the income of the other co-application should not be counted for loan eligibility.

• Mother and unmarried daughter

A daughter and mother can apply for a combined house loan if the property is in the name of just one applicant and the income of the other co-applicant is not considered when assessing home loan eligibility. It would aid in preventing legal issues following the daughter’s marriage.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.