New Mortgage Research Network report reveals how a partner's lower credit score impacts homeownership costs
- A lower credit score leads to higher interest rates, pricier mortgage insurance, and costlier homeowners insurance in most states
- Buying a home with a partner with lower credit could increase monthly payments by $437, adding up to $63,000 over the typical length of owning a home
- Costs vary by market, with San Jose, San Francisco, and San Diego seeing the highest spikes
COLUMBIA, Mo., June 26, 2025 -- Love may be blind, but credit scores are not. Buying a home with a partner who has a credit score below 640 increases monthly housing costs by an average of $437, according to a new Mortgage Research Network study released today. That increase, nearly $63,000 over the typical 12-year homeownership period, is driven by higher interest rates, steeper mortgage insurance premiums and more expensive homeowners insurance associated with lower credit scores.
To understand just how much a lower credit score can cost couples, Mortgage Research Network analyzed monthly homeownership expenses in the 50 largest U.S. cities. The study compared scenarios where one partner had excellent credit and the other did not, factoring in local home prices, mortgage rates, PMI costs and insurance premiums. The result: a clear picture of how much more couples may pay when buying a home with a partner who brings a low credit score to the table.
"Research has long shown that couples with similar and higher credit scores are more likely to stay together, but our study highlights another important reason to pay attention to credit before tying the knot," said Tim Lucas, the report's author and lead analyst at Mortgage Research Network. "Beyond relationship stability, a partner's low credit score can significantly increase the cost of buying a home, most people's biggest investment, by thousands of dollars over time. Understanding these financial impacts early can help couples make smarter decisions together."
Where Low Credit Impacts Homebuying Costs the Most
The added cost of a partner's low credit varies significantly by market, with some cities seeing dramatic increases. In San Jose, Calif., the monthly cost increase tops the list at $1,049, followed by San Francisco ($926) and San Diego ($751).
In terms of percentage increases, Memphis, Tenn., sees the highest jump at 30.2%, with other steep hikes in Detroit (29.9%), Oklahoma City (24.1%), Kansas City, Mo. (20.4%) and Indianapolis (19.2%). On average, across the 50 metro areas studied, monthly housing costs rose 14.4% when a partner with a lower credit score was added to the mortgage loan.
The Cost of Low Credit Goes Beyond Mortgage Rates and Isn't Just Financial
The financial impact of a partner's lower credit score goes beyond just higher mortgage rates. It can also mean significantly steeper private mortgage insurance premiums and costlier homeowners insurance in most states. In community property states, the consequences may extend even further. Lenders may be required to consider a spouse's credit and debts, even if they're not on the mortgage loan.
And it's not just about dollar signs adding up. A 2015 Federal Reserve study found that couples with a 66-point credit score gap were 24% more likely to break up within the first four years of their relationship. The study also showed that couples with higher average credit scores were more likely to stay together.
When Love Wins: Options for Credit-Mismatched Couples
Having different credit scores doesn't mean couples have to put off homeownership or sacrifice a smart buying strategy.
- FHA loans can be more credit-flexible, offering lower mortgage rates and reduced mortgage insurance costs for lower-credit borrowers.
- VA and USDA loans provide 0% down options with terms that are typically less sensitive to credit scores.
- Refinancing later can help couples eliminate mortgage insurance and secure better rates once credit improves.
How Credit Impacts The Cost of Buying a Home By Market
Market | Avg. Home | House | House | $ Increase | % Increase |
Average for All 50 Cities | $480,649 | $3,449 | $3,886 | $437 | 14.4 % |
Albuquerque, N.M. | $345,861 | $2,420 | $2,848 | $427 | 17.7 % |
Atlanta, Ga. | $460,371 | $3,252 | $3,697 | $445 | 13.7 % |
Austin, Texas | $565,359 | $4,479 | $5,084 | $605 | 13.5 % |
Bakersfield, Calif. | $403,541 | $2,835 | $3,090 | $256 | 9.0 % |
Baltimore, Md. | $185,219 | $1,438 | $1,555 | $117 | 8.2 % |
Boston, Mass. | $881,685 | $6,250 | $6,808 | $558 | 8.9 % |
Buffalo, N.Y. | $235,659 | $1,867 | $2,084 | $217 | 11.6 % |
Charlotte, N.C. | $414,689 | $2,923 | $3,245 | $322 | 11.0 % |
Chicago, Ill. | $311,927 | $2,587 | $2,980 | $393 | 15.2 % |
Cincinnati, Ohio | $256,253 | $1,953 | $2,234 | $281 | 14.4 % |
Colorado Springs, Colo. | $472,774 | $3,372 | $3,872 | $499 | 14.8 % |
Columbus, Ohio | $270,234 | $2,053 | $2,342 | $290 | 14.1 % |
Dallas, Texas | $333,297 | $2,798 | $3,255 | $458 | 16.4 % |
Denver, Colo. | $611,714 | $4,261 | $4,848 | $587 | 13.8 % |
Detroit, Mich. | $ 76,048 | $711 | $924 | $212 | 29.9 % |
El Paso, Texas | $232,210 | $2,065 | $2,459 | $394 | 19.1 % |
Fort Worth, Texas | $307,750 | $2,612 | $3,054 | $442 | 16.9 % |
Fresno, Calif. | $402,733 | $2,829 | $3,085 | $255 | 9.0 % |
Houston, Texas | $276,943 | $2,389 | $2,811 | $422 | 17.7 % |
Indianapolis, Ind. | $236,071 | $1,769 | $2,109 | $340 | 19.2 % |
Jacksonville, Fla. | $303,648 | $2,227 | $2,522 | $295 | 13.2 % |
Kansas City, Mo. | $252,291 | $1,966 | $2,368 | $402 | 20.4 % |
Las Vegas, Nev. | $462,857 | $3,066 | $3,458 | $392 | 12.8 % |
Long Beach, Calif. | $939,895 | $6,369 | $6,964 | $595 | 9.3 % |
Los Angeles, Calif. | $1,060,048 | $7,161 | $7,832 | $671 | 9.4 % |
Louisville, Ky. | $260,252 | $1,937 | $2,251 | $314 | 16.2 % |
Memphis, Tenn. | $150,172 | $1,202 | $1,565 | $363 | 30.2 % |
Mesa, Ariz. | $457,565 | $3,141 | $3,624 | $483 | 15.4 % |
Miami, Fla. | $672,911 | $4,669 | $5,198 | $529 | 11.3 % |
Milwaukee, Wis. | $218,404 | $1,693 | $1,966 | $274 | 16.2 % |
Nashville, Tenn. | $462,037 | $3,205 | $3,765 | $560 | 17.5 % |
New York, N.Y. | $845,517 | $6,322 | $6,926 | $603 | 9.5 % |
Oklahoma City, Okla. | $207,274 | $1,897 | $2,354 | $457 | 24.1 % |
Omaha, Neb. | $292,842 | $2,490 | $2,910 | $420 | 16.9 % |
Orlando, Fla. | $409,520 | $2,927 | $3,289 | $362 | 12.4 % |
Philadelphia, Pa. | $224,632 | $1,709 | $1,974 | $265 | 15.5 % |
Phoenix, Ariz. | $433,068 | $2,984 | $3,452 | $468 | 15.7 % |
Pittsburgh, Pa. | $240,228 | $1,819 | $2,094 | $275 | 15.1 % |
Portland, Ore. | $571,773 | $3,919 | $4,403 | $484 | 12.4 % |
Raleigh, N.C. | $455,557 | $3,190 | $3,538 | $348 | 10.9 % |
Rochester, N.Y. | $230,979 | $1,832 | $2,047 | $214 | 11.7 % |
Sacramento, Calif. | $500,588 | $3,474 | $3,791 | $317 | 9.1 % |
San Antonio, Texas | $259,391 | $2,262 | $2,673 | $411 | 18.2 % |
San Diego, Calif. | $1,184,987 | $7,984 | $8,734 | $751 | 9.4 % |
San Francisco, Calif. | $1,461,683 | $9,807 | $10,733 | $926 | 9.4 % |
San Jose, Calif. | $1,656,706 | $11,092 | $12,141 | $1,049 | 9.5 % |
Seattle, Wash. | $984,661 | $6,672 | $7,335 | $664 | 9.9 % |
Tucson, Ariz. | $342,816 | $2,407 | $2,817 | $410 | 17.1 % |
Virginia Beach, VA | $425,898 | $2,963 | $3,378 | $416 | 14.0 % |
Washington, D.C. | $783,912 | $5,201 | $5,791 | $589 | 11.3 % |
To view the full report, including methodology details, please visit: https://www.mortgageresearch.com/articles/low-credit-spouse-and-homebuying-costs/
About Mortgage Research Network
Based in Columbia, Missouri, MortgageResearch.com provides real estate advice, research, and news to help homebuyers navigate the mortgage landscape. With a focus on simplifying decisions around homeownership, the site delivers in-depth analyses and reports on market trends, lending practices, and homebuying tips.
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