Mortgage with both incomes but only one credit score

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We are in the state of Maryland and need a mortgage. The primary wage earner is $20000/year with a FICO score of 561 and secondary earner is $180000 per year with a FICO score of 800.

But my question is can I get a mortgage considering both incomes but only the higher FICO score.

Guest 0.10 Dollars($)

I guess if you go for the loan in your name, then only your income and credit score will be considered. And if the borrower does not have the higher income, then he can make the higher wage earner as the cosigner.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.17 Dollars($)

Guest 0.10 Dollars($)

"But my question is can I get a mortgage considering both incomes but only the higher FICO score."

That will not be acceptable to lenders Ralph.

You are trying to say that by including both incomes you be allowed to qualify for a higher loan amount but the risk lender has in providing the financing because one borrower has a lower credit score be ignored.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Ralph,

You can take the loan along with the other person as co-borrower. In that case, the lender may consider both of your income and scores and will calculate a combined average. Thus it will help you to qualify for a loan with a better interest rate.

Guest 0.10 Dollars($)

Thanks for the info guys. But what i was asking for is, suppose i apply for the loan but i use the primary earner's income and the secondary earner's score as it's much higher?but you say for that either i'd cosign or both of us sign on the loan?

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i just forgot to reply Niccss, I'm looking for a mortgage of around $200,000. and i would be able to document it also. Also, do you think getting a PMi is that important?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Ralph,

Lenders generally require PMI from those homebuyers who borrow loans more than 80% of their home value. It means that if you make less than 20% of down payment, you will be required to pay the PMI.

Guest 0.10 Dollars($)

Yes Ralph, you both will have to sign on the loan.

evolovik26 · Posted: Sat Sep 01, 2007 3:27 pm Post subject:

Ralph what you need to do in such a case is see if you can get a stated income loan with just the higher score borrower as you will get the better interest rate on your loan. ( i am assuming the second income of 180k is a typo and supposed to be 18,000) You can be on the title.

If a stated income loan is not an option then you are stuck because primary earner's score is used to determine eligibility.

Or you can see if its possible to show 2k more income for your coborrower or 2k less for you.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Ralph,

If you consider only the primary wage earner's income and his score, you can go for a conforming loan. Conforming loans are that type of home loans that are based on the guidelines set forth by government institutions like Fannie Mae and Freddie Mac. If you consider taking such loan, the lender will mainly look at your debt to income ratio (dti). And if you have a favorable dti, you may easily qualify for this loan. To know more on conforming loans, you may refer to http://www.mortgagefit.com/conforming-loan.html

Guest 0.10 Dollars($)

Hi Ralph,

When you have low score, you can consider taking an FHA loan. To qualify for this sort of loan, the lender will not look at your credit score as primary criteria for qualification. Rather, he will check your debt to income ratio which should not exceed than 41%.

ezmortgageloanz · Posted: Wed Sep 05, 2007 5:36 pm Post subject:

Based on the limited information provided, I would second that FHA would be a viable option to investigate.

You might need to consider using a FHA lender that manually underwrites their loans in the event that you find yourself over the max. DTI allowance.

Regards,

Scott Miller

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