Forgotten Your Password?

Need to Register?

Question Icon

Does a cosigner help my rate?

im a first time buyer and i want to get an fha. my credit is 715 but my income is only $70k by rileytsmith56562 from Harrisburg, Illinois. May 14th 2015 Reply

Cody Bellah (
#17 ranked lender in Missouri - 77 contributions

No it will not, when it comes to mortgages the bank will take the lower of the 2 peoples credit score, example: If you have a 660 FICO and the co signer has a 800 FICO the loan would be qualified off of the 660 FICO. Vice Versa, if you have a 660 FICO and the co signer has a 640 FICO the loan would be qualified off of the 640 FICO and in turn you would get a worse rate than if it was just you at a 660 FICO. It can only get worse, never better.

May 14th 2015
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Loans are priced based on the LOWEST mid credit score of ALL borrowers.. and cosigners only help if you have limited credit or low income.. There is no difference in rate just because one loan has a cosigner and another does not.. FHA loan limits are at $271,050. but without knowing what you pay monthly on your outstanding debt, it's difficult to say if $5800 in monthly income would be sufficient to qualify for an FHA loan.. For this reason, i suggest you contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

May 15th 2015
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

No, number of borrowers does not affect the rate. If their middle credit score is lower than yours it can hurt, but not help. $70,000 is decent income depending what you're trying to buy and the amount of debt you have. FYI, it is also possible to get a conventional loan with a co-signer as well. A good mortgage lender would look at both options for you.

May 15th 2015
Subscribe to our news feed.