When applying for a mortgage loan, a cosigner can:
Strengthen your loan application. Cosigners typically have a great credit score and a low Debt-to-Income (DTI) percentage. By adding them, they can reassure the lender.
Add security for making payments. By cosigning, they are responsible for the payment if you default.
Having a cosigner on your loan can’t:
Lower your down payment. You will still be responsible for the minimum down payment of the mortgage loan.
Offset a high Debt-to-Income (DTI). Mortgage lenders will not allow the borrower to have higher than a 43 on their DTI.
Erase a lousy credit score. Conventional loans require a minimum credit score of 620, and FHA loans require a minimum of 580.