What term describes a person who guarantees the repayment of a loan without their income being used to qualify for the loan?

The term that describes a person who guarantees the repayment of a loan without their income being used to qualify for the loan is a guarantor. A guarantor provides a level of security to the lender by promising to repay the loan if the primary borrower defaults, but their income is not part of the calculations for the borrower's creditworthiness or loan eligibility. This arrangement can facilitate loan approval for someone who may not have sufficient credit or income on their own.

The role of a guarantor is distinct from a co-signer, who does have their income considered in the qualification process and shares the financial responsibility equally. An underwriter assesses the risk of the loan and makes the decision to approve or deny it, playing a pivotal role in the lending process but not acting as a guarantor. An investor typically provides capital for a loan or a project but does not guarantee repayment in the same manner as a guarantor.