Couples entering the housing market together often assume that two incomes are better than one. But when one partner brings a low credit score to the table, the cost of homeownership can rise dramatically, and many buyers aren’t prepared for just how much.
According to a new analysis from the Mortgage Research Network, having a spouse or partner with a credit score below 640 can increase monthly housing costs by $437 on average. That translates to nearly $63,000 more over a 12-year period, which is roughly the average time homeowners stay in a property.
Time to make a move? Let us find the right mortgage for youCredit gaps can cost thousands in every market
The MRN study looked at the 50 most populous metro areas and found that the cost of having a low-credit partner is widespread, though it hits some regions harder than others.
In San Jose, a couple with one low-credit borrower would pay an average of $1,049 more per month (about a 15% increase) on their home loan than a couple with stronger credit profiles. In San Francisco, the cost is $926 more (13%), and in San Diego, it’s $751 (12%). But the effect is just as striking in more affordable markets when viewed as a percentage.
Meanwhile, in more affordable cities such as Memphis, Detroit, and Oklahoma City, the dollar amount may be smaller — around $200 to $300 extra per month — but translates to a much larger percentage increase of 24% to over 30% in monthly payments.
This means that even in lower-cost markets, credit disparities can impose a significant relative burden on homebuyers.
What’s behind the extra cost?
Lenders see credit scores as a reflection of how likely a borrower is to repay debt. So even if one borrower has excellent credit, the lower score drives risk and thus, pricing.
Even if one partner has excellent credit, the other’s weaker score can lead to a higher interest rate, more costly private mortgage insurance (PMI), and even pricier homeowners insurance. In some cases, the lower score doesn’t just affect the interest rate; it can shape the entire loan structure.
And in community property states, including California, Texas, Arizona, and others, even if one spouse doesn’t apply for the mortgage, their credit profile and debts may still factor into loan pricing or eligibility.
Ways couples can navigate a mortgage with one low score
While the numbers are daunting, there are strategies for couples looking to buy a home without letting one partner’s credit drag them down:
- Apply solo: If the higher-credit partner qualifies on their own, applying individually may secure a better interest rate.
- Explore flexible loan programs: FHA, VA, and USDA loans offer more lenient credit requirements and low- or no-down-payment options.
- Delay the purchase: Taking time to improve the lower score — even by 20 to 40 points — could result in significant savings.
- Plan to refinance later: If a home is urgently needed, couples can buy now and refinance once the lower-credit partner improves their score.
- Work with a credit counselor: Professional advice can often yield faster credit recovery and help couples map out a strategy.
The bottom line
Buying a home with a partner should ideally mean financial synergy. But when one borrower has a low credit score, it can lead to thousands in added costs, and even put a strain on the relationship.
Understanding how credit impacts mortgage pricing, and exploring strategies to offset those costs, like applying solo, improving credit scores, or using low-to-no down payment loan programs such as FHA, VA, or USDA loans, can help couples build a stronger financial foundation from the start.
