2B. Co-Applicants | Palmetto LightReach Knowledge Base

Overview:

Co-applicants must be an immediate family member of the primary applicant, and can help gain application approval for families that may otherwise not have qualified for LightReach financing.

Ideal Use: Co-Applicants are ideal for families whereby the title holder needs another family member to pass credit.

Disclaimer: Co-applicants are equally responsible for the Energy Plan obligations. The co-applicant must be an immediate family member of the primary applicant. Mis-use of the co-applicant feature, intentional or otherwise, may result in restricted access of the Certified Installer.

Getting Approved:

A	Any Co-Applicant must be...	An immediate family member of the primary applicant (no exceptions). This includes: Parent/Child Sibling Spouse/Domestic Partner
B	Co-Applicant email...	Must be a distinct/separate email from the primary
C	To get approval with a Co-Applicant....	At least one applicant must pass credit (both applicants are run, highest score taken) At least one applicant must be on title (both applicants are checked) Co-Applicant must be an immediate family member of the applicant (no exceptions)
D	To achieve NTP (M0) with a Co-Applicant...	In general, same existing NTP requirements apply: Both applicants must sign the contract Web portal account set up + customer payment provided from one of the applicants ID Verified and Title cleared via at least one of the applicants

Approved Underwriting Docs for Co-Applicants:

LightReach underwriters may request additional documentation to affirm the co-applicant is an immediate family member. In these situations, contact LightReach underwriting with at least one of the following documents. Providing multiple documents may be required, and is encouraged whenever possible,

'Recent' documents are generally defined as those issued within the last 90 days.

Copy of both applicants’ drivers licenses. Must show the same last name (or maiden name, and/or same address).
Voided check or bank statement showing the co-applicant with the same last name (or maiden name) and/or same address.
Recent mortgage statement showing both applicants, on the same address.
Recorded deed/title showing both applicants on the same address.
Recorded marriage license confirming spouse/legal partner relationship.
Recorded certificate of birth showing the parent/child relationship.

FAQ:

1	What individuals qualify as immediate family? Do they need to live in the home?	Immediate family is defined under the following criteria: Parent, child, sibling, or spouse/domestic partner. The co-applicant does not need to expressly live in the home. However, some documents (listed above) may require both applicants to be listed on the document.
2	Still a soft check?	Yes, all credit checks are soft.
3	I'm a sales rep. Can I be a co-applicant?	Only if the full approval & underwriting criteria are met (IE the sales rep is legitimately the immediate family member of the applicant). Intentional misuse of the co-applicant feature will result in immediate access termination.
4	My customer's co-applicant is deceased. Can I use them?	No.
5	My customer's co-applicant is estranged/does not live there anymore?	Only if the full approval & underwriting criteria are met.
6	Does credit score impact who is a primary vs secondary?	Big picture: Co-applicants (both parties equally responsible for the obligation) are distinct from having a co-signer (in which the primary is first responsible, and responsibility falls to the secondary if the primary fails to pay). With this in mind, we use the terms 'primary' and 'secondary' largely for organizational purposes. In effect, there is no meaningful distinction or hierarchy between the two, as both are equally responsible for the Energy Plan. Therefore, LightReach will never 'rearrange' or 'subjugate one applicant over the other.
7	My customer signed the contract, why isn't it showing up as signed?	Contracts must be signed by both applicants. DocuSign packages automatically route from Signer #1 to Signer #2. In most cases, the customers have simply not yet executed Signature #2. Certain states may require an authorized signature from the sale's rep.
8	What if home is in a trust or LLC?	Standard LightReach underwriting guidelines apply. (At least one applicant) Customer must provide trust or LLC documents confirming they are a trustee/controlling member/owner.
9	What happens if the primary is delinquent?	Big picture: Co-applicants (both parties equally responsible for the obligation) are distinct from having a co-signer (in which the primary is first responsible, and responsibility falls to the secondary if the primary fails to pay). With this in mind, we use the terms 'primary' and 'secondary' largely for organizational purposes. In effect, there is no meaningful distinction or hierarchy between the two, as both are equally responsible for the Energy Plan. If there is a delinquency on the account at large, both applicants are subject to the potential consequences and actions of delinquency, just as a single-applicant Energy Plan would (including but not limited to late fees, impact to credit scores, etc.).
10	More than 1 co-applicant?	Applications are limited to 2 applicants.
11	My homeowner has a lower income. Should we add a co-applicant?	Income and DTI are not factored in our credit criteria.
12	Can I remove a co-applicant or change it after I have run?	Yes, via running a new application.
13	Can I get a higher approval amount w/ co-applicant?	In the event that an applicant has a monthly payment cap based on their FICO, utilizing an approved co-applicant could provide a path to a higher monthly payment, should the co-applicant have a higher FICO.
14	What if one applicant has a bankruptcy?	If one applicant has a bankruptcy, but the other applicant on the account is in good credit standing and fully qualifies, the file can move forward. (Provided they meet all other underwriting requirements, ie Title Verification)