How a partner will affect your interest rate?

[Bades]

My buddy and I are looking to purchase a rental property - he for the most part has no credit. He is very responsible just has never had a loan or a credit card. I on the other hand have very good credit 760+. If we go the bank for financing options, will his no credit history be a problem? I'm not sure if the bank will determine I have a great score and he has no score, so they give us a "good/okay" rate as opposed to a "Great" rate if it was just me applying for the loan?

How does this work? - and I guess this could be the same with a spouse and purchasing a home too.

[JustBill]

Other owners on a deed don't necessarily have to be makers of the loan. This of course wouldn't hold them responsible for repayment, but it is often done in the context of spouses. The question of impact on the loan underwriting may be a better question for your loan officer. Beyond the credit history, other financial strengths and income of your partner will/should be evaluated as part of the loan approval process.