how is credit score calculated w married couple seeking mortgage?

[brobins75]

do they go by my low score, or average our scores?

 

mine is 500, hers 720. I only have 4 small bad accounts but a recent 30 day late with Honda Financial.

 

If i just pay them off, my credit will still suck, what do i do?

 

my brother in law (he doesnt know how bad my score is) said that they may consider us with conditions, such as we gotta pay off the bad debt. does that mean they could just say pay it off now? i could do that, but they derogatories will remain on my report. will they want them removed?

 

im such a screw up. we found a once in a lifetime deal. 11 acres, waterfront, new house (never inhabited), recently listed for $740k, bank asking $240k. wish i wasnt so irresponsible in the past.

 

can anybody see anyway this could happen? we have access to 10-15% down with us plus family help.

 

thanks

[blackberry74]

If you're both on the mortgage, they will use the lowest of both of your middle scores...so if your scores are 715, 780, & 742 and hers are 600, 589, & 620, they'd use your wife's middle score of 600.

[Studyin'2Show]

Can she qualify by herself or does she need your income to qualify? If she needs your income then, unfortunately, they would use your mid score.

[b854th]

I was under the impression that if one person makes significantly more than the other, then they just use that persons score. Is that true?

[d00daa]

I was under the impression that if one person makes significantly more than the other, then they just use that persons score. Is that true?

 

No.

 

Generally speaking, if you're both on the loan, it's the lowest mid score between you both that's used.

 

If your wife can qualify for the loan on her own (with ONLY her income), she'd almost be a lock for an approval I would guess.

 

If you are in a community property state (and NOT using a VA loan @ 100% LTV, apparently) they will still pull your credit, but will not use it for scoring or qualification purposes, just to factor your debt into DTI.

 

If you need both of your incomes to qualify, you both will need to apply and be on the loan, and they will use your mid-score, because it's the lower of the two.

[b854th]

I was under the impression that if one person makes significantly more than the other, then they just use that persons score. Is that true?

 

No.

 

Generally speaking, if you're both on the loan, it's the lowest mid score between you both that's used.

 

If your wife can qualify for the loan on her own (with ONLY her income), she'd almost be a lock for an approval I would guess.

 

If you are in a community property state (and NOT using a VA loan @ 100% LTV, apparently) they will still pull your credit, but will not use it for scoring or qualification purposes, just to factor your debt into DTI.

 

If you need both of your incomes to qualify, you both will need to apply and be on the loan, and they will use your mid-score, because it's the lower of the two.

 

Thanks. My wife's score is in the 800's and thanks to my stupidity, and the credit crisis, my scores nose dived from 720's to mid 500's all in a matter of months(Thanks to CLD's). The good thing is I only have 2 30 days(part of stupid me) ever, and plenty of pay on times.

[maddkredit]

I was under the impression that if one person makes significantly more than the other, then they just use that persons score. Is that true?

 

No.

 

Generally speaking, if you're both on the loan, it's the lowest mid score between you both that's used.

 

If your wife can qualify for the loan on her own (with ONLY her income), she'd almost be a lock for an approval I would guess.

 

If you are in a community property state (and NOT using a VA loan @ 100% LTV, apparently) they will still pull your credit, but will not use it for scoring or qualification purposes, just to factor your debt into DTI.

 

If you need both of your incomes to qualify, you both will need to apply and be on the loan, and they will use your mid-score, because it's the lower of the two.

 

Thanks. My wife's score is in the 800's and thanks to my stupidity, and the credit crisis, my scores nose dived from 720's to mid 500's all in a matter of months(Thanks to CLD's). The good thing is I only have 2 30 days(part of stupid me) ever, and plenty of pay on times.

 

 

You may want to head over to the credit forum. I can tell you my wife and I were approved for a VA Loan 30yr fixed. My scores are in the 640-660 range and hers are in the 700's. The fastest way to increase your score is to pay down your revolving balances. This especially remains true during these current times of CLD's. I think your revolving balances may be hurting your score. FICO considers your card maxed when you approach %70 of your limit. I can tell you if you pay down your balances, and head over to the credit forum to see what to do regarding lates and collections, you can achieve a 620+ with some hard work and dedication.