Free Notice of Conditional Acceptance — Cosigner Required
Conditional acceptance letter requiring a cosigner / guarantor. Counts as adverse action under FCRA §615 when based on consumer report — full CRA disclosures required. Cosigner approval is among the most common conditional-approval forms when credit, income, or rental history is borderline.
Free Notice of Conditional Acceptance — Cosigner Required — overview
A Notice of Conditional Acceptance — Cosigner Required is a conditional acceptance letter requiring a cosigner, with embedded FCRA §615 adverse-action disclosures. Cosigner-required approvals are adverse actions when based on consumer reports.
Generate the Letter
This letter offers conditional approval contingent on the applicant providing a qualifying cosigner. Because the conditional approval is based in part on a consumer report, the letter includes the FCRA §615 disclosures (CRA name, dispute rights, free-copy right).
Conditional approval = adverse action: When a conditional approval is based on a consumer report, FCRA §615 requires the same disclosures as a denial. Many landlords mistakenly think only denials trigger FCRA disclosure requirements — they don’t. Cosigner-required approvals, larger deposits, and other conditions all qualify if based on report information.
1. Letter Header (From / To)
2. Letter Body
⚠ Conditional approval requiring a cosigner = adverse action under FCRA §615
Conditional approval (e.g., requiring a cosigner, larger deposit, or higher rent) IS an adverse action under FCRA §615 if based in whole or in part on a consumer report. You must include the same CRA disclosure, dispute rights, and free-report rights as a denial. Cosigner-required approvals are particularly likely to be FCRA adverse actions.
3. Signature
About the Notice of Conditional Acceptance — Cosigner Required
A conditional acceptance letter requiring a cosigner is the most common form of conditional approval in tenant screening. It allows a landlord to extend an offer when the applicant’s own credit, income, or rental history falls just below screening criteria — provided the cosigner can backstop the obligation. Under FCRA §615, this conditional approval IS an adverse action when based in whole or in part on a consumer report — many landlords miss this point. The letter must include all the same FCRA disclosures as a denial: the Consumer Reporting Agency name, address, and phone; the statement that the CRA did not make the decision; the applicant’s right to obtain a free copy within 60 days; and the right to dispute. In addition, the letter should: (1) specify the cosigner qualification requirements (typical: credit score 700+, income 4x monthly rent, stable employment); (2) set a clear deadline for cosigner response; (3) specify what happens if no qualifying cosigner is provided. State equivalents may apply: California CCRAA, New York GBL §380, others.
Key Requirements
- Conditional approval based on consumer report = adverse action under FCRA §615
- Same FCRA disclosures required as for a denial
- Common cosigner qualifications: credit 700+, income 4x rent, stable employment
- Set clear deadline for cosigner response
- Specify consequences if no qualifying cosigner
- Cosigner signs lease as guarantor (separate document or lease addendum)
Common Mistakes
- Treating conditional approval as not requiring FCRA disclosures (it does)
- Vague cosigner qualifications (set specific credit, income, employment standards)
- No deadline for cosigner response
- Failing to verify cosigner’s qualifications with same screening as applicant
- Not retaining a copy in the applicant file
- Discriminatory cosigner application (apply uniformly across applicants)
Best Practices
- Apply uniform cosigner criteria across all applicants to avoid discrimination claims
- Run full screening on cosigner (same authorization, same FCRA process)
- Use separate cosigner agreement or lease addendum
- Set deadline 7-14 days for cosigner response (reasonable but firm)
- Retain copy in both applicant and cosigner files for 5 years
- Verify cosigner’s qualifications directly (don’t accept self-reported data)
Make screening decisions with full information
An adverse-action notice is only as defensible as the underlying screening report. Tenant Screening Background Check has been verifying renters since 2004 — credit, eviction filings, criminal background, and employment — with proper FCRA permissible-purpose documentation built in.
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⚖ Legal Disclaimer
This letter template is provided for general informational purposes only and does not constitute legal advice. Federal FCRA (15 USC §1681 et seq.) requirements apply to all adverse-action notices based on consumer reports. State equivalents (CA CCRAA/ICRAA, NY GBL §380, others) impose additional requirements in some jurisdictions. For FCRA guidance, visit FTC FCRA and CFPB. Consult a qualified attorney before relying on this template for any adverse-action decision.
