Co Borrower doesnt help?

[C_DUBYA]

Hello all,

I am currently in need of a pre approval to start a home building.  My credit score is too low and I am paying off everything but as you know my score will not recoup quickly enough.

My mother in law has offered to co borrow/help.  Her credit score is in the 700s.  The issue is she would need our income, as she is retired and just has a small monthly income.

Is there a way this would work somehow?  Coborrow and use my income and her credit score?  Or would lenders always use the lower score?  In which case whats the point of the borrower?  Just $$?

Thanks for any help/feedback.

[DrJim]

I am certainly not expert, but I believe they average both borrower's mid-score.  Usually the additional income from the co-borrowed (like a spouse) is to qualify for a certain level of loan.  If you both make $75K, for example, you can buy more house than if you only have $75K HHI.  I'm sure someone with more knowledge and experience will chime in.

[C_DUBYA]

Thanks DrJim for the reply.  If they used the middle of the two that would be great.  Hope that is true.

[C_DUBYA]

Just a heads up to others.

I have reached out to a few mortgage peeps and the answer is that they do in fact always use the lower score.  

[frugalQ]

they take the lower of the two middle scores.  they do not average them out.

[tooleman694]

co-borrowing does not help in credit score problems, its more for income reasons.