Will co-signer hurt or help my mortgage rates and/or loan limit?

[Maureen Campbell]

I am planning to purchase an investment property with a partner, but I am trying to determine whether I should take out the loan in only my name. He has excellent credit, no debt and will be providing the down payment, however, he is currently getting virtually no income since he is in school. The downpayment and all of our reserve funds will be in a joint bank account. I also have excellent credit and an income that should qualify me for the loan amount we are seeking, but don't have a down payment. We have a written agreement detailing responsibilities (financial and otherwise) regarding the investment. This brings up a couple of questions in my mind:

1.) In a co-signer situation, is the debt-to-income ratio changed if there are two people on the loan or would they just be calculating my debt-to-income, since I am the only one that has either? Would the bank have the impression that we were both living off my salary (which is not the case)?

2.) Will the bank need to see his finances anyway, since he is a joint owner on the account that holds the funds for the down payment and reserves? Or will they only care that my name is on the account and I have access to the funds?

3.) It would be easier to do all the paperwork myself, since he is out of state and quite busy. Are there any advantages (or obligations) that I am missing to having him co-sign for the loan?

4.) Are there any issues that I should be aware of with adding him to the title if he is not on the loan for the mortgage?