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quicktht · Joined: 27 Dec 2009 Posts: 1 1.33 Dollars($)

My husband and I have credit scored in the 500s. Our co-signer has incredible credit 800+ we are trying to find a
FHA loan with him as a co signer. However have been told that we can not because our score is to low.
If he is the co-singer why would this be an issue of our credit. Wouldn't he be the credit they are using?

jameshogg · Posted: Sun Dec 27, 2009 10:30 pm Post subject:

Hi quicktht,

As far as I know, if there is co-signer, then his/her credit score is taken into consideration and not that of the primary owners. In that case, your loan should have been approved because your co-signer has a good credit score. I would suggest you to contact your lender and clarify the whole issue.

Thanks

Guest

I know i tried to do the same thing and the lender told me that the main name had to have at least a certain score as well as the cosigner. The point of the cosigner has been explained to only assit with the orginial signer.

JKennedySLG · Posted: Mon Dec 28, 2009 11:49 am Post subject:

The credit of BOTH the main Borrower and Co-Borrower will be used in order to qualify. Depending on where abouts your credit may be in the 500's will determine how much of a down payment is required. There is still a lender or two whom will lend with a borrower down to a 500 FICO with a larger down payment. Although you have a signer with an excellent score, you're still a liability to the bank as well considering you too will be on the loan. I hope this helps...

500+ Credit = 10% Down Payment
540+ Credit = 5% Down Payment
580+ Credit = 3.5% Down Payment

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