Will a cosignee with a not-as-good FICO score hurt the interest rate of the principal borrower?

Question

My wife and I are a couple months away from seriously getting into the housing market. She has a very good FICO score (in the 750-800 range); I have one that's not so good (it's in the 660-710 neighborhood).

How much, if at all, in percentage points can we expect my FICO score to hurt us with me as a cosignee and her as the principal borrower on our mortgage? Does the cosignee hurt credit rates or is he simply viewed as an income source without added risk?

Answer 1

The co-signing person can hurt the deal (by causing an increase in interest rates) but I think you're okay. Her score is very high, and yours really is not that low, trust me it's better than a lot of people's. Just make sure when you apply to list her first.

I will say this though, if you've gone bankrupt in the last few years and thatis why yours is so much lower then it may go up, but I wouldn't worry about it. I think you are on target for a very low percentage rate. Good luck!

Answer 2

660 or 710, that's quite a loaded range, as long as yours is a 750 or better and you have sufficient income between the two of you you should be fine,

as far as the person with the lesser score, i don't think it will be an issue, a 660 really is not that bad, and a 710 is actually regarded as above average.

the average score of all americans is like a 680.

Answer 3

Your score is high enough that it will not cause substantial rate increase.  If you are both working, she can be primary wage earner. This can help improve terms of loan.

If you both are on loan, then both are reviewed. You should be OK.