Mid-score??

[bakes1313]

Alright, I know that this has been covered before. But, I need a little help understanding it once again. Sorry!

 

When applying for a loan with a coapplicant, I know that most lenders use the mid score. Got that part! The part I am confused about is this -- do they use the mid-score of the person with the highest income, or the lowest mid-score of both borrowers? Or, does it depend on the lender?

 

Thanks for your help!

[willtygart]

highest income

[shootin high]

Will, first off let me say that you are awesome! Now, I need a little clarification too. Ok, so the midscore is from the highest income person. Does the coapplicant's scores matter at all? I've seen some posts where you comment that with a 580 score, you can sometimes get financing. Would both applicants need a midscore of 580?

[DACMAN]

Will,

 

Check your guidelines buddie. FNMA and FHLMC will use the lowest middle score of all applicants.

 

FHA if run through automated will use the same as FNMA and FHLMC

 

Subprime will generally use the mid score of the primary wage earner -- primary meaning the one with the most income.

[Hideous]

i beleive you dac but i heard that they take the 2 middle scores and add them and divide by 2 as well, is this a sub prime thing as well ?

 

most say what you jsut said. which is why i am not going to be on the loan initially wife has 60 points more mid and the job, i serve no purpose until i sue cap 1 for mis reporting that i am currently 120 days past due on a 0 payment on a 0 balance.

 

and i did talk to me cooke from cap 1 that assured me he would fix it, after he became involved my account was now started in 1996 not 2001 and he added about 12 late pays on it.

 

complain and you shall recieve a crappier report i guess.

[willtygart]

DAC's right for the cream of the crop stuff and FHA....in my experience when people ask that question they arent in that position and it is just the mid score of the borrower that makes the most money......He is right though ..............first your Buckeyes kick our Husky buts and then I leave myself open with a post like mine above...sheesh whats next. :shock:

[NeedItNow]

Will,

 

Check your guidelines buddie.  FNMA and FHLMC will use the lowest middle score of all applicants.

 

FHA if run through automated will use the same as FNMA and FHLMC

 

Subprime will generally use the mid score of the primary wage earner -- primary meaning the one with the most income.

 

Yeah, this is a real bummer for most couples. Seems like one of them always has credit issues. If one does not qualify for Fannie, gotta find another route.

 

Matt

[pixie]

Will,

 

Check your guidelines buddie.  FNMA and FHLMC will use the lowest middle score of all applicants.

 

FHA if run through automated will use the same as FNMA and FHLMC

 

Subprime will generally use the mid score of the primary wage earner -- primary meaning the one with the most income.

 

So if my dh mid score is 625 and mine is 690 hows exactly does this work. He is the primary on the loan so is it mine or his or both and if its both is it as hideous suggested added together and then divided by 2? This really intrests me as I have had some problems with getting straight info out of the brokers and bankers we have talked to ( though I think we may have found a good one, i let you know when the gfe package gets here!)

[willtygart]

I may be mistaken but in my mind it is the lowest middle score to QUALIFY for a mortgage....yet the rate is based on the PRIMARY BORROWERS credit score.........if that makes sense.

[NeedItNow]

Well, with Fannie it does not matter which set of scores are used as long as both people quality. If you qualify, you qualify. The guy with a 620 gets the same rate as a guy with a 700. (Of course the lenders may require a 660 for an 80/20 and will use the primary wage earners middle score).

 

Sub-prime is a whole different story. Anything goes, it all depends on the investor.

 

Matt

[willtygart]

well...sept I have some lenders that will give a better rate for a score over 730 on the conforming stuff..........see one set of guidelines and 100 mutations from all the lenders :shock:

[bakes1313]

Hey, thanks everyone!

 

Let me ask this question now. With midscores around 580-600, what is the chance of qualifying for a mortgage with close to conforming rates?

 

Will, our Buckeyes are awesome again this year, aren't they! Of course, here in Buckeye country you can lose all season long and beat Michigan and it is all good!

[willtygart]

youd have to tell me more about your situation. When I was a kid, around 6 or 7, I was given an Ohio State shirt by my folks who were not football fans but I think they knew i liked football so they bought it for me. I was facinated by the "buckeye" stickers that players got on their helmets for making a great play and until I was 12 I wanted to go to college at Ohio State and be the first player with TWO helmets....one to play at gametime and the other to hold all the stickers that wouldn't fit on the first helmet! I havent really gotten into the Husky's here as the fans in the NW are a bunch of whiners and think the Pac 10 is the 8th wonder of the world. :wink: That being said, once again post some more info....depending upon the situation as a whole you CAN get conforming rates OR you could be a subprime canidate. Lay it on us and we can give you a better idea.

[bakes1313]

Ok, we are thinking of applying in January, (hoping rates don't rise too quickly before then!) We are looking at a mortgage of about the $200-225k range. Our annual income is $90-100k a year, monthly debts (excluding current house) of $600 per month including credit cards and student loans. Our current mid-scores are 607 and 589, with 607 being the highest income. Scores are low because wife was off work for 5 months on medical disability. Currently, we are working on all the medical collections, etc. Nothing (besides medical) has been late in the last 12 months. Will we be in ok shape for conforming or near conforming by January?

 

You know, I still watch the Bucks players and see how many stickers can actually fit on their helmets! Great story Will. Did you grow up in Buckeye country? I tell you right now, Maurice Clarett is like a venomous snake around here! Fans are really sick of him. Going to the game on Saturday, the 'Shoe is magical!

[willtygart]

No I grew up a military brat, both of my folks were Marines.....so traveled the world to Japan, all throughout the south, Colorado and California. My Mom was actually a drill instructor and yes..I am still going through counseling for that. :cry: :wink:

 

Football to me, especially when I was growing up in Okinawa, Japan......was just really special and I don't know why the Buckeyes were my favorite team for a while. I recently heard that Ohio State requires a 450k minimum to just show up.........really suck how they make money off of these players.........but thats a whole new debate all together. Have fun at the game..........................oh yeh you asked some questions didnt ya...i'll come back in a few and answer them....got a few calls :shock: