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Owner removes co-signer from loan, keeps home

Mohammed did not qualify for a mortgage without his co-signer, but Perch identified how to increase his qualifying income so he could keep their family home.

  • who: Homeowner
  • real estate goals: Remove co-signer from mortgage
  • issues: Low qualifying income

The issue

Mohammed had previously co-purchased a home with a family member so he could qualify, however that family member now wanted to remove themselves from title so they could go buy their own property. Mohammed wanted to stay in his current home if possible, otherwise he wanted to qualify for a mortgage that would enable him to buy a large enough property for his family. The bank denied Mohammed when he tried to qualify for the mortgage without a co-signer, so he came to Perch.

Mohammed was also self-employed, which can sometimes complicate getting a mortgage. Typically, self-employed homeowners are qualified using their 2 year average income. When he went to the bank, they looked at his 2019 and 2018 tax returns and decided he didn’t qualify.

As a result, Mohammed was reluctantly getting ready to list the home up for sale in order to downsize to a smaller property.

The solution

Our Perch advisors were able to identify that Mohammed’s family member wasn’t buying a property for at least a few months. Mohammed also hadn’t filed his taxes yet, which meant that if he filed his 2020 taxes as soon as possible, he could use a 2 year average of 2020 and 2019, which greatly increased his qualifying income amount.

Perch was able to calculate the exact qualifying income amount required, so Mohammed and his accountant could factor that into the deductions they elected to take. Our Perch advisors were to get him approved with a major bank at a great rate and successfully bought out their family member so that he was able to keep their family home.


  • Proposed solution: 24 hours
  • Approval: 1 week

Key takeaways

If you get denied, always seek out a second opinion. Whether it’s a gap in knowledge or a gap in product availability, there are mortgage solutions out there.

Mohammed and his family were able to stay in their home and the family member was happy to maximize their return. His family was able to avoid the additional costs associated with listing and selling their property in order to downsize, since they didn’t need to incur all the fees in order to sell the property and recognize their portion of the gains.

They are happy Perch customers and we loved working with them!

*Please note that names have been changed in this story to protect the privacy and identity of individuals.