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What is a Borrower?

A Borrower represents an individual who is applying for a mortgage loan. The Borrower entity contains all the personal, financial, and credit information needed to evaluate loan qualification and complete the mortgage transaction. Borrowers are associated with a Deal, not individual loans. This means that when multiple loans exist within a Deal, all borrowers share their financial profile (income, assets, liabilities, credit) across all loans in that Deal. Borrower information includes:
  • Personal identification (name, date of birth, tax identifier, citizenship)
  • Contact information (email, phone, mailing address)
  • Financial profile (income, assets, liabilities)
  • Credit information (credit scores, credit history)
  • Declarations (bankruptcy, prior property ownership, intent to occupy)
  • Marital status and spouse information
  • Military service status

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Why does the Borrower entity exist?

Mortgage underwriting requires comprehensive information about each person applying for the loan. The Borrower entity centralizes all this information and establishes the relationships needed for qualification:
  1. Deal-Level Association - Borrowers belong to Deals, allowing their financial profile to be shared across multiple loans when needed.
  2. Financial Profile Aggregation - A borrower’s income, assets, and liabilities are collected and evaluated together to determine qualification.
  3. Credit Evaluation - Credit information is associated with each borrower and used for pricing and underwriting decisions.
  4. Regulatory Compliance - Borrowers must provide declarations about their financial history, property ownership, and other factors required by regulations.
  5. Spouse Relationships - The system tracks marital status and spouse information, which may affect qualification and documentation requirements.

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Borrower characteristics and implications

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Single vs. multiple borrowers

Loans can have a single borrower or multiple borrowers applying together. Implications: When multiple borrowers are on a loan, their financial profiles are combined for qualification purposes. Both incomes count toward qualification, both sets of assets are available for down payment, and both sets of liabilities are included in debt-to-income calculations. However, when multiple borrowers are on a loan, the lowest credit score is typically used for qualification and pricing decisions. Example: Two borrowers are married and applying together. Both borrowers provide their income, assets, and liabilities. The system combines their financial profiles-both incomes count toward qualification, both sets of assets are available for down payment, and both sets of liabilities are included in debt-to-income calculations. However, if Borrower 1 has a credit score of 750 and Borrower 2 has a credit score of 720, the lender uses 720 for qualification and pricing. Each borrower maintains their own profile, but the system evaluates their combined financial profile for loan qualification. Borrowers are linked via the spouseId field when married, and their maritalStatus indicates their relationship. See the Borrower documentation for marital status and spouse relationships.

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First-time homebuyers

Borrowers who have never owned a home before are considered first-time homebuyers. Implications: First-time homebuyers may qualify for special loan programs, down payment assistance, or other benefits. The firstTimeBuyer field is set to true, and homeownerPastThreeYears is set to false. This may affect eligibility for first-time homebuyer programs, down payment assistance programs, and may influence loan terms or requirements. Example: The borrower has never owned a home before. Their firstTimeBuyer field is set to true, and their homeownerPastThreeYears field is set to false. This may qualify them for first-time homebuyer programs, down payment assistance, or other benefits that reduce the cost of homeownership. The firstTimeBuyer and homeownerPastThreeYears fields are used to determine eligibility for special programs and may affect loan terms or requirements. Some programs require borrowers to complete homebuyer education courses. See the Borrower documentation for these fields.

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Borrowers with prior property ownership

Borrowers who have owned property in the past three years must provide information about that property. Implications: Prior property ownership may affect qualification, documentation requirements, and eligibility for certain programs. Borrowers must provide details about the prior property including usage type, title type, and any foreclosure, short sale, or deed-in-lieu history. This information may affect waiting periods, documentation needs, and program eligibility. Example: The borrower owned a primary residence that was sold two years ago. Their homeownerPastThreeYears field is set to true, and they provide details about the prior property including priorPropertyUsageType (primary residence) and priorPropertyTitleType (sole ownership). This information is used to evaluate their property ownership history and may affect documentation requirements. For borrowers with prior property ownership, the system tracks details about the prior property including usage type, title type, and any foreclosure, short sale, or deed-in-lieu history. Borrowers who have had a foreclosure, short sale, or deed-in-lieu may face waiting periods before they can qualify for a new mortgage. See the Borrower documentation for prior property fields.

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Borrowers with bankruptcy history

Borrowers who have filed for bankruptcy must disclose this information, which affects qualification and waiting periods. Implications: Bankruptcy history affects eligibility and waiting periods before a borrower can qualify for a new mortgage. Different loan programs have different waiting periods after bankruptcy. Chapter 7 typically requires 2-4 years depending on the program, while Chapter 13 may have shorter waiting periods if payments are current. The bankruptcyIndicator and bankruptcyChapterType fields track this information. Example: The borrower filed for Chapter 7 bankruptcy three years ago. Their bankruptcyIndicator is set to true, and bankruptcyChapterType is set to CHAPTER_SEVEN. Depending on the loan program, there may be a waiting period before they can qualify for a new mortgage.
Bankruptcy waiting periods: Different loan programs have different waiting periods after bankruptcy before a borrower can qualify for a new mortgage. Chapter 7 typically requires 2-4 years depending on the program, while Chapter 13 may have shorter waiting periods if payments are current.
For borrowers with bankruptcy history, the system tracks the bankruptcy indicator and chapter type. This information is used to determine eligibility based on program-specific waiting periods. See the Borrower documentation for bankruptcy-related fields.

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Non-borrowing spouses

Some loan programs require information about a non-borrowing spouse, even though they are not on the loan application. Implications: Some loan programs (particularly FHA and VA) require consideration of non-borrowing spouse income and debts, even though the spouse is not on the loan application. This ensures the lender has a complete picture of the household’s financial situation. The borrower’s maritalStatus indicates they are married, and the nonBorrowingSpouseMonthlyIncome field contains the spouse’s income. Example: The borrower is married, but their spouse is not applying for the loan. However, the loan program (e.g., FHA or VA) requires the non-borrowing spouse’s income to be considered for qualification purposes. The borrower’s maritalStatus indicates they are married, and the nonBorrowingSpouseMonthlyIncome field contains the spouse’s income.
Non-borrowing spouse requirements: Some loan programs (particularly FHA and VA) require consideration of non-borrowing spouse income and debts, even though the spouse is not on the loan application. This ensures the lender has a complete picture of the household’s financial situation.
For non-borrowing spouses, the system tracks the spouse’s monthly income via the nonBorrowingSpouseMonthlyIncome field. The spouse may also be created as a separate Borrower entity with their own profile for tracking purposes, even though they’re not on the loan. See the Borrower documentation for non-borrowing spouse fields.

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Borrower declarations

Borrowers must provide declarations about their financial history, property ownership, and other factors required by regulations. Implications: Borrower declarations affect qualification, documentation requirements, and eligibility for special programs. Declarations include information about bankruptcy, prior property ownership, outstanding judgments, party to lawsuits, and other financial factors. These declarations are required by regulations and help lenders assess risk and determine appropriate loan terms. Example: As part of the application process, the borrower provides declarations. They set firstTimeBuyer to true if they’ve never owned a home, homeownerPastThreeYears to indicate prior property ownership, bankruptcyIndicator and bankruptcyChapterType if they’ve filed for bankruptcy, outstandingJudgmentsIndicator if they have outstanding judgments, and other declaration fields. These declarations affect qualification, documentation requirements, and eligibility for special programs. Borrower declarations are required by regulations and affect loan qualification. The system uses these declarations to determine eligibility, documentation needs, and program requirements. False declarations can result in loan denial or legal consequences. See the Borrower documentation for all declaration fields.

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Key concepts to remember

Borrowers are associated with a Deal, and their financial profile (income, assets, liabilities, credit) applies across all loans within that Deal. This allows for proper evaluation when multiple loans are involved.
A borrower’s income, assets, and liabilities are collected from various sources (employment, bank accounts, credit reports) and aggregated to create a complete financial picture for qualification purposes.
Each borrower has their own credit profile with credit scores and credit history. When multiple borrowers are on a loan, the lowest credit score is typically used for qualification and pricing.
Borrowers must provide declarations about their financial history (bankruptcy, prior property ownership, outstanding judgments, etc.). These declarations are required by regulations and affect qualification and documentation requirements.
Marital status and spouse information affect qualification, documentation requirements, and may be required even for non-borrowing spouses depending on the loan program.
The borrower’s intentToOccupy declaration determines whether the property will be a primary residence, second home, or investment property. This affects loan terms, interest rates, and down payment requirements.
For more information on related entities, see the GraphQL API Reference:
  • Deal - The Deal that contains the borrower and their associated loans.
  • LoanApplication - The loan application that the borrower is associated with.
  • Income - Income sources associated with the borrower.
  • Asset - Assets owned by the borrower.
  • Liability - Debts and obligations associated with the borrower.
  • OwnedProperty - Properties currently owned by the borrower.