Marrying Up—or Down? How a Low-Credit Spouse Can Cost You $63K
Tying the knot shouldn’t tie your finances in knots—but a partner with a sub-640 score can tack on an extra $437 per month (over 12 years!) and drive up homeownership costs by over $63,000. In this eye-opening episode, Tim Lucas and Craig Berry dive into the data behind “low-credit spouse” penalties and share strategies to protect your mortgage application. You’ll learn:
- Where the Costs Come From: How lenders use the lower score, and why mortgage, homeowners, and PMI premiums spike for low-credit borrowers
- Regional Impact: Why affordable markets like Memphis (+30.2%) and Detroit (+29.9%) see the biggest percentage increases—and how San Jose couples face $1,049 more per month
- Community Property Caveats: The credit-score risks in nine community-property states—even if only one spouse applies
- Relationship Ripples: Surprising Fed findings on a 24% higher separation rate when couples’ credit gaps exceed 66 points
- Smart Loan Picks: How FHA loans can save $146/month on a $400K mortgage and lower PMI by $114/month versus conventional financing
- Timing & Repair: Why waiting to buy—giving the lower-score spouse time to boost credit—and refinancing later can slash long-term costs
For the full analysis, read the original article here: https://www.mortgageresearch.com/articles/low-credit-spouse-and-homebuying-costs/
