How Does Apartment Co-Signing Work?


The real estate market has rebounded in earnest and in some cities and counties, the demand for housing has outstripped available units. This can also be attributed by a rebound in the job market meaning more people are working. While this is good news on all fronts, it also means apartment complexes are also stricter when it comes to approval requirements and are now checking credit more vigorously than before. Applicants who do not have good credit, or those with recent evictions, foreclosures, bankruptcies or broken leases are finding it harder to get approved for an apartment, condo or town home. The answer for most has been co-signaling.

What if relatives can not co-sign?

That is perfectly okay. Today, you do not need a particular person to co-sign anything for you. There are businesses with A + credit which offer apartment co-signing services to applicants who are having trouble getting approved the traditional way because of bad credit. These companies offer their credit and financials on behalf of bad credit applicants and guarantee approval.

How does this actually work?

Getting an apartment co-signaling service is extremely easy. As we have just mentioned, there are corporations out there willing to put their credit and financials on the line to get you approved for an A + apartment. This allows the complex to bypass your credit. The co-signer approaches the apartment complex and fills out all the paperwork on your behalf guaranteeing to be responsible for the rent if you default. It's a win-win situation for the applicant.

What does one need to qualify?

The tragic fact about apartment hunting is that if you have bad credit, you can be denied an apartment even if you have a stellar income. Hundreds of families with steady jobs and an admirable income get turned down each and every day just because their credit is not where the apartment wants it to be. This can be quite frustrating given many of these families just ended a foreclosure.

All you need to qualify for apartment co-signing is a good income, preferably above $ 3000 a month (this may depend on city and state). This is because many apartment co-signing services only deal with A-rated apartments (most section 8 apartments do not participate in co-signing arrangements).

You must also be prepared to pay the co-signing fee plus the first month's rent in advance. The apartment communities require the first month's rent upfront because of the degree of risk they are taking in foregoing credit checks for the applicant. As for the fee, the co-signing company requests for a fee to allow you to use its credit and financials plus the company has to guarantee the rent for you.

Can a criminal record stop me for being approved?

There is no definite answer to this question as apartments view criminal history on a case-by-case basis. Some apartments will approve felonies as long as they do not involve domestic violence or sexual assault and as long as they are old enough. Others have a zero tolerance for any felonies of any sort. Misdemeanors other than traffic tickets are generally ignored by most apartments but there are some that can use this as a reason to issue a denial letter.


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