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Can I get a bad credit mortgage if I apply with a co-borrower who has good credit?
Having a co-borrower with good or excellent credit may improve your chances of obtaining a mortgage, but it will also depend on just how bad your credit situation is. If your credit is bad because you missed a few payments here and there but you have been showing on-time payments for a while, you should have no problem.
However, if you have a very recent history of defaults and/or late payments, plus lots of unpaid debts or items in collection, then it can be a lot harder for you to be approved.
Always keep in mind that the best thing you could do is to take some time to work on your credit score and bring it up as much as possible before you even consider making a purchase as big as buying a home. If you have had trouble in the past keeping your bills paid and managing your money, it may not be a good idea to pile a house on top of that, plus all of the interest, homeowner's insurance, and other costs that come along with it.
However, if you are absolutely set on buying a house, you will have a better chance if your co-borrower has good credit. Your interest rate can still be quite high, though, and can cost you thousands in the long run. You will also experience higher monthly payments.
Also, the more money that you have put together for a down payment means less money that you are asking for in the home loan, and that is always a good thing. That gives the loan company more factors to think about when reviewing your application. Having a co-borrower with good credit who is willing to put their credit on the line for you, as well as a good down payment, shows the bank that you are making strides to strengthen your credit, and that you see purchasing a home as an excellent investment that you are serious about.
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