My question involves an UPCOMING mortgage in the state of: North Carolina

I'm using my non-taxable Social Security Disability Income (SSDI) (permanent, not temporary) to qualify for a home purchase which will be owned in "Joint Tenancy With Rights of Survivorship" by myself & my fiance, who has had no income in 3 years due to being on workers compensation (which stopped in 2/2014).

Our assets are jointly owned, with rights of survivorship. Debts (only me--a student loan) are separate. No credit card balances.

We've been pre-approved for a loan, and now have a sales contract, and have a lender.

My fiance will be working in the future. We want him to receive the annual 1098 tax forms for payment of mortgage interest & for payment of real estate taxes (to use as deductions against his taxable income), so we want him to be the "Borrower" on the loan application, and myself as the "Co-Borrower."

Our lender said I MUST be the "Borrower" and my fiance MUST be the "Co-Borrower" named on the loan application because I have income, and he does not. He said FNMA rules state the person who has income must be named as the "Borrower."

But as I've read the top of page 1 of the Uniform Residential Loan Application, it reads:
"...Applicants should complete this form as 'Borrower' or 'Co-Borrower,' as applicable."

QUESTION: What does that mean, "as applicable"?

continuing:
"...Co-Borrower information must also be provided (and the appropriate box checked) when [right here there is a small box] the income or assets of a person other than the Borrower (including the Borrower's spouse) will be used as a basis for loan qualification..."

QUESTION: Does this mean I can make my fiance the Borrower, check that box, and make myself the Co-Borrower? So that my income is used for qualifying for the loan?

Lender keeps saying I MUST be first on the loan app, verbatum he wrote to me:
"At closing the attorney will ask how the 1098 mortgage interest form will be sent and that’s when you tell them who to put on that form. This is how it works when non-married people buy property; an investment purchase by siblings or something like that."

QUESTION: Is the Lender correct? Because I read one thing on the loan app, and the lender says something else. From my past experience in purchasing homes, the annual 1098 tax forms have been sent to the first person named on the mortgage loan.

I'm not sure where to ask this question, where exactly this would fall under on this website. Sorry if it's in the wrong place.

Thanks for reading.