Endorser FAQs

Are there income requirements for an Endorser?

There are no specific income requirements, but an Endorser must have a source of income that would allow them to comfortably take on the financial responsibility of guaranteeing a loan.

What happens if a Borrower can’t make their loan repayments?

If a Borrower is unable to repay their loan in a given month, the Borrowers can discuss the situation with HFLNJ. It may be possible to reduce or suspend loan payments for a period of time. If the Borrower cannot make any loan payments, the Endorser(s) will be responsible to repay the loan.

Does HFLNJ pull credit reports?

HFLNJ pulls credit reports for both Borrowers and Endorsers to see a pattern of responsibility in paying obligations.

What are the obligations of an Endorser under the loan?

An Endorser and their spouse is agreeing to be “jointly and severally liable” for the loan, meaning that HFLNJ may approach them, individually or collectively, to repay the loan at any time.

What is an Endorser required to do?

To guarantee a loan, Endorsers and their spouses must complete, sign, and date the Endorser information form and sign the promissory note along with the Borrower.

Who can be an Endorser?

An Endorser must be a New Jersey resident, who is credit-worthy. Endorsers may not be a member of the clergy, or political office holder or on active duty in the military. A person may not be a borrower and endorser at the same time. The Endorser must fill out an information form and is required to sign the applicant’s loan documents.

What is an Endorser?

An Endorser is someone who agrees to be responsible for the debt of a Borrower should they default on their loan payments.