A borrower is the party in a loan agreement which receives money or other instrument from a lender and promises to repay the lender in a specific time frame.

Another name for a borrower is a debtor. The borrower is considered a mortgagor in the loan agreement, which is one who gives the mortgage on the property as security for the debt obtained.

There are five (5) main types of borrowers:
1. First time homebuyer is a person who is purchasing a home for the first time or an individual that has not owned real estate in the last 3 years.
2. Owner occupied borrower is a person that purchases a home with the intent of living in the home for a long period of time and claims homestead (if applicable) on their property and may choose later on to take out a home equity line of credit.
3. Investing borrower is a person or company that buys properties to rehab and resell or to rent out. Investors usually own multiple properties.
4. Refinance borrower is a person who takes equity out of their home via a refinance to make improvements or pay off debt.
5. Bad Credit borrower is a borrower that has either missed, or failed to comply with the past repayment terms, filed bankruptcy, foreclosed on or may have a judgment but is financially able to purchase a home and is willing to pay a higher interest rate.