If your fiancé will qualify for a loan without you as a co-signer, then why would she not if you are a co-signer? If their income alone qualifies them for the loan, then having your name on the loan also will not hurt a thing. If you're unemployed it won't help. But it definitely will not hurt since you are the one providing the down payment.
You need to talk with a loan officer that knows what they're doing and has their act together. I say this because my own mother was in the banking industry for 30 plus years and that's why I suspect whoever is advising you is looking out solely for their own interest, and couldn't care less about yours. Seek the advice of multiple loan officers from multiple lenders. The best four words in your vocabulary are "SHOW ME IN WRITING" if they start this crap about "Well, the law says....." Also, there is a difference between "law" and "lender rules & requirements". The law is the same across all lenders. But while their own rules and regulations may dictate different requirements, those rules and regulations MUST be within the requirements of the law. There are federal lending laws, and state lending laws. So be aware of that.
