Co-Signing for a Rental Applicant
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One of the biggest challenges that a former worker or survivor often has is getting approved for rental housing - even though they have adequate financial resources - because they have no or inadequate credit history. If you are willing to consider being a cosigner for a former worker or survivor who is applying to lease a flat or apartment, you can provide a huge benefit for them with no financial outlay and extremely minimal risk.
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The cosigner scenario is that the former worker or survivor has income and/or financial resources to cover their rent. This may be a combination of personal savings, job income, family assistance, government assistance, or assistance from a charity such as Bridges & Balm. There is typically no scenario where the cosigner is expected to contribute to the rent payment.
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As a cosigner, there is always small level of financial risk. In the case where the renter is sponsored by Bridges & Balm, the following guardrails are in place to minimize cosigner risk.
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The former worker or survivor is responsible for all or a pre-agreed portion of the rent payment. Occasionally other parties or organizations are paying for some or all of the rent, but no part of the rent is typically the responsibility of the cosigner.
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If for any reason, the renter cannot pay their portion of the monthly rent, Bridges & Balm will cover the deficit.
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In the extremely unlikely event that Bridges & Balm or another party is unable to cover rental deficits, the renter agreement requires them to vacate the property by the end of the next rental month.
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The cosigner may request that their name be removed as a cosigner at any time.
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To be a co-signer for a rental property, property management companies typically require the cosigner to meet the following criteria:
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Total gross monthly income 3-4 times the monthly rent. Monthly rent for a flat or small apartment typically averages between $1000 -1600 per month depending on the area of the country, so the cosigner's gross income would need to be $4000 - $6400 per month or $48,000-76,000/year.
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Have an average or better credit score - typically in the mid 600's or better
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​Landlords often require cosigners have a low debt-to-income ratio and may also prefer cosigners who have a history of homeownership or stable rental history.​​
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A hard credit inquiry is typically conducted when you cosign, which can slightly lower your credit score for several months.
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If you have questions or comments or are interested in volunteering to be a cosigner, please use the Contact Us link below or email us at bridgesandbalm@gmail.com.
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Thank you for considering becoming a cosigner!