Will adding a co-borrower to our cash out refi help us get a better rate? Both of our credit is in the mid 600 range.

If both your scores are in the mid 600s you probably don't need to co-signer. FHA allows cash out up to 85% Loan to value.

Hi Gregg. It really depends on your debt ratio. Cash out to 85% can be done thru FHA but your income and debts will have to meet guidelines. Just because your credit score qualifies, it doesn't mean you meet the other guidelines. You really need to allow a licensed loan officer to review your status and determine if you meet qualifications for the loan program that will benefit your situation and your goals. Credit score is only a small part. Shoot me an email at LHarvey@twmortgage.com and I will be glad to look closer at your situation. My office is in the Reading area and I have been serving PA residents for the last 25 years.

650 credit scores are OK, but be aware that you have to meet other criteria as well. Your best bet is to meet with a local loan professional who has a reputation for great customer care to help you through the process. If you are geographically close to Leo who also commented, call him up!! All the best, Scott.

Adding a co-borrower with higher scores will not change your rate.. Loan pricing is based on the LOWEST MID SCORE of ALL borrowers.. Typically, co-borrowers only help when you have little to no credit and when you don't have sufficient income.. they do not help at all if you have low score or bad credit.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347