👥 The Reality: 23% of Borrowers Use Co-Signers
23% of mortgage borrowers use co-signers to qualify. Why? Low credit score, insufficient income, or recent financial issues. A strong co-signer can increase approval odds by 40-60% and improve rates by 0.25-0.75%.
Key Stat: Co-signers with 750+ credit score + strong income increase approval odds by 60%. Co-signers with 650-700 credit score increase odds by 25-35%.
Borrowers Using Co-Signers
23%
Approval Increase
40-60%
Rate Improvement
0.25-0.75%
Co-Signer vs Co-Borrower: What's the Difference?
👤 CO-SIGNER
- ✅ Does NOT appear on title
- ✅ Does NOT live in property
- ✅ Guarantees payment if you default
- ✅ Credit & income verified
- ✅ Debt counts against their DTI
- ✅ Can be removed via refinance
- ✅ Usually family member or friend
👥 CO-BORROWER
- ✅ DOES appear on title
- ✅ DOES live in property
- ✅ Joint ownership & responsibility
- ✅ Credit & income verified
- ✅ Debt counts against their DTI
- ✅ Harder to remove (requires refinance)
- ✅ Usually spouse or partner
7 Requirements for a Strong Co-Signer
Credit Score 700+
Minimum 700 credit score. 750+ is ideal. Below 700 = minimal benefit. Co-signer's credit is heavily weighted by lenders.
Get preapproved with a strong co-signer →Stable Employment
2+ years at current job. Lenders verify employment. Job changes = delays. Self-employed co-signers need 2 years of tax returns.
Get preapproved with a strong co-signer →Strong Income
Income should be 1.5-2x your mortgage payment. Example: $4,000/month mortgage = co-signer needs $6,000-8,000/month income.
Get preapproved with a strong co-signer →Low Debt-to-Income
Co-signer's DTI should be below 40%. Your mortgage debt counts against their DTI. High DTI = co-signer can't help much.
Get preapproved with a strong co-signer →Clean Payment History
No late payments in last 2 years. No collections, charge-offs, or bankruptcies. Recent negative items hurt co-signer value.
Get preapproved with a strong co-signer →Liquid Assets
Bank statements showing cash reserves. Lenders like to see 3-6 months of mortgage payments in savings. Proves financial stability.
Get preapproved with a strong co-signer →Willingness & Trust
Co-signer must understand they're liable if you default. Legal obligation. Relationship must be strong. Many co-signers regret it later.
Get preapproved with a strong co-signer →Real Example: Marcus Gets Approved with Mom as Co-Signer
Marcus's Situation: 28 years old, $55K salary, 680 credit score, $8K debt. Lender says: "We can't approve you alone. Need a co-signer."
WITHOUT Co-Signer:
- ❌ Approval: DENIED
- ❌ Reason: Low credit score + high debt ratio
WITH Mom as Co-Signer:
- ✅ Mom's credit: 760
- ✅ Mom's income: $85K/year
- ✅ Mom's debt: $2K/month (low DTI)
- ✅ Approval: YES! $350K mortgage approved
- ✅ Rate: 6.25% (vs 7.5% without co-signer)
- ✅ Savings: $150/month in interest!
Get Approved with a Co-Signer
Find lenders experienced with co-signer mortgages. Increase approval odds by 40-60%.
Get Preapproved Now →Key Takeaways
23% of borrowers use co-signers
Co-signer increases approval odds 40-60%
Co-signer improves rate by 0.25-0.75%
Co-signer credit score 700+ is ideal
Co-signer income should be 1.5-2x payment
Co-signer DTI must be below 40%
Co-signer is legally liable if you default
Co-signer debt counts against their DTI
Co-signer can be removed via refinance
Co-borrower is harder to remove
Family members are common co-signers
Relationship must be strong & trusting
Get Approved with a Co-Signer Today
Find lenders experienced with co-signer mortgages. Increase your approval odds significantly.
Get Your Preapproval Letter →About James Rodriguez
James Rodriguez is a Co-Signer & Credit Specialist with 15+ years helping borrowers qualify with co-signers. He's personally helped 8,000+ borrowers get approved with co-signers and understands the complexities of co-signed mortgages.
📍 Co-Signer Expert | Credit Specialist | Approval Strategist | NMLS Certified