Financing in San Diego>Question Details

Deerslayer, Home Buyer in San Diego, CA

do both borrowers have to meet the min credit score?

Asked by Deerslayer, San Diego, CA Thu May 19, 2011

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42
"Yes they do or if one has a bad credit score you may need to come up with a co-signer"

This is incorrect advice, If a borrower has a credit score too low to qualify for the loan program for which they are applying, a co-signer will not help one bit.

The question was very clear:
"do both borrowers have to meet the min credit score?"

The answer is equally as clear:
"YES"

BOTH must meet the minimum credit score requirement, a co-signer does not have magic powers to erase bad credit.
Web Reference: http://WeFixRates.Com
2 votes Thank Flag Link Tue May 31, 2011
Yes, qualification is based on the lowest, mid credit score.

Example:
Borrower #1 - 740/760/761 = Mid Score 760
Borrower #2 - 640/648/652 = Mid Score 648

Qualification will be based on the 648 credit score.
Web Reference: http://WeFixRates.Com
2 votes Thank Flag Link Thu May 19, 2011
Yes. This is a basic qualifier for all lending. If you are utlilizing the income of two people each have to be qualified by credit score.
Web Reference: http://www.lisawarfield.com
1 vote Thank Flag Link Fri Nov 4, 2011
Hello Deerslayer,

If you need to use the income from both borrowers, than you will need to use credit scores from both borrowers.

Mark Fleysher, MBA, Broker

http://www.jackconleyrealty.com
1 vote Thank Flag Link Tue Nov 1, 2011
Yes, if two buyers are going on the loan.

However, the parties that go on TITLE (ie: are owners) can be different than those who go on the loan. So if one party is not needed for qualification purposes, its not an issue to just use the one borrower.

(FHA and VA are a little different; payments from both are used, but only the BORROWER's score is looked at)

You have three credit bureaus. Equifax, Transunion, and Experian. They will each give you a score.

The bank will use the LOWER of the MIDDLE scores... cofused?

Husband has 668, 702, and 725 scores.

Wife has 500, 522, and 560.

If BOTH need to go on the loan for qualification purposes, you are out of luck probably because the lower of the two MIDDLE scores is the wifes 522. That's the qualifying score.

However, if the wife doesnt work, and the husband has all of the income, we would probably just put him on the loan, and use HIS middle score, 702.

Hope this helps!!! If you have any questions, I am here to help...

Daniel
Web Reference: http://www.lehmangrp.com
1 vote Thank Flag Link Fri May 20, 2011
Hello Deerslayer,

First I want to apologize that someone here felt I did not answer your question and was just doing a sells pitch for PM Bank.

To answer your question most lenders will use the lowest middle of both borrowers, so the answer is yes.

In regards to credit score criteria, well that can be depending of the lending source you choose to get a loan from. If you need to more details regarding specific loans and programs we offer please do not hesitate to contact me.

Best regards,
Jean Paul Schwarz
jschwarz@pmbank.com
Pacific Mercantile Bank

NO BROKER, NO MIDDLEMAN DIRECT LENDER!
1 vote Thank Flag Link Fri May 20, 2011
If both borrower's are on the mortgage then yes they have to meet the underwriting guidelines to get that loan.
0 votes Thank Flag Link Mon Nov 7, 2011
Yes both borrowers need to meet the minimum credit score requirement. The mid score of the lowest scored borrower will be used to determine financing. Get pre qualified before meeting with a real estate agent .
0 votes Thank Flag Link Mon Nov 7, 2011
Yes, both borrowers need to meet the min credit score. Lenders are looking at the total picture currently and want to be sure they will be able to recoup with interest the money they lend.
0 votes Thank Flag Link Sun Nov 6, 2011
Seems the question has been answered thoroughly - unless you go through some sketchy private lender, the answer is, "yes"
0 votes Thank Flag Link Sun Nov 6, 2011
The credit scores of all parties in the transaction will be used to determine the rate that will be offered on the purchase. All parties must meet the minimum scores established by the lender and or the program being offered. The current minimum score ranges between 620 and 640 to get a rate in the 4% range. There are a number of lenders who will lend to buyers with scores as low as 580, but the rates will be higher. I suggest that you check the scores of all who will participate in this purchase and have it review by a credit repair company to see what can be done to increase the score and clean up the current record. It is easier than think and it may save you thousands of dollars over the life of the loan. Good luck!!
Web Reference: http://www.grannum.com
0 votes Thank Flag Link Sun Nov 6, 2011
It depends on loan program and if both parties are needed to qualify for the financing.
0 votes Thank Flag Link Sat Nov 5, 2011
Deerslayer, all company use the lower of the 2 now days.

With my company has a min credit score of 500. So I do not usually have that problem. You will have the pay the higher rate if the credit is too low for other lenders, so the rate will be closer to 5% rather than 4%. Also, if one of the mid scores is under 580, I will need 10% down rather than 3.5%.

What I would try first is to do the loan, for the one whoi does meet the min requirement. If that person does qualify then you would still get the rate in the high 3% range. Also I can allow expanded debt ratios to help you do it. If you are serious about getting this done at a decent rate. Please feel free to contact me if you would like more information.
0 votes Thank Flag Link Fri Nov 4, 2011
As a lender, I can tell you that we will look at the middle score of both borrowers and we have to use the lesser of the 2. There are ways we can get an increase in the scores if needed that can be looked at on a case by case basis. We can also see if we need the lesser scores income to qualify. As we have higher tolerances for ratios, we may be able to look at that as well. Don’t hesitate to reach out with an y questions.
0 votes Thank Flag Link Fri Nov 4, 2011
In most cases, yes. As a few people, like Edward state, they will weigh the primary borrowers score heavier than the secondary. Check out my resources page.
0 votes Thank Flag Link Fri Nov 4, 2011
In order to put the spouse on the mortgage and count their income, yes. They can go on title though.

My min credit score is 500, if that helps.

This is not a hard money loan (rates are between 3.75-5.5 depending on how bad the credit is. give me a call I will calculate a APR that would apply to your situation. )

direct line (657) 269 . 5720
0 votes Thank Flag Link Wed Nov 2, 2011
Generally speaking, both of your credit scores will come into play. However, depending on your lender and whose income is primary, you maybe be able to get away with one party having a credit score below the minimum.
0 votes Thank Flag Link Wed Nov 2, 2011
Corrolary point...Banks use the lower of the two applicants score to define risk, dont they? They dont take the better of the two, but the worse of the two applicant scores. Plus new underwriting standards just went in place to standardize appraisals, GFE's and HUDs
0 votes Thank Flag Link Tue Nov 1, 2011
Borrowers need to meet number of hurdles. Credit score is only one of them. Independent contractors or small business owners with great credit scores are denied a mortgage for no better reason than those that have no track record at all. Getting a mortgage is a lot to with crossing your T's and dotting your I's presenting the needed documents requires a careful professional who understands the process and does it right in the first place for often there is no second chance.
Getting a professional involved and being qualified will honestly determine if one should or not have their hopes up for being a candidate for today's lenders.
0 votes Thank Flag Link Mon Oct 31, 2011
If one boroower can sho good debt to income ratio, and you have the minimum down payment, then you won't need the lower credit borrower. If you need income from both borrowers, than you will need to get your score above minimum.

VID COOPER Foreclosure and Bank REO's Specialist-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
0 votes Thank Flag Link Thu Jun 16, 2011
Spouse and legal partners are tied to one another often in financial matters, so both need to be above the absolute minimum credit requirements. The condition of both scores will determine the condition and the rate of the loan! Do not let anyone kid you, Good score bad score will cost something, Good score Good score will get you better rates and conditions. Work on getting those scores up, you can gain 30 - 40 points on your FICO with just a few months working your credit and spending habits!
0 votes Thank Flag Link Thu Jun 16, 2011
No, if you do not need the potential buyer on the loan. However, most of the time the income is needed to qualify for the home. Lenders measure your qualifications on 3 major criteria. 1) credit score and history, 2) Income (employment history and sustainability) 3) overall debt. The main concern to lenders to qualify buyers is to make sure there will be no default in the future. Also, if you are married, yes both spouses will HAVE to be on a FHA loan, if this is the option you are pursuing.
0 votes Thank Flag Link Thu Jun 16, 2011
No. People with no credit score can still buy a home. The important thing is not to have bad credit. No late payments or collections in last year. If one buyer has credit and the other doesnt you can still get a loan.
0 votes Thank Flag Link Tue Jun 7, 2011
Deeslayer,

It depends on the loan type/program that you need. there are programs that allow borrowers with no Credit Scroe to secure mortgage but the disadvantage is that you have to pay a higher premium, if you want to take advantage of the lower interest rate, it is recomended for all borrowers to have a credit score of 680 and higher.

if you need any additional help please feel free to call our office and talk to one our Mortgage Professionals

(310) 348-7878 or visit http://www.crestico.com
0 votes Thank Flag Link Tue Jun 7, 2011
Yes, most lenders do require a minimum credit score, but some will differ in the actual number required. If you work with a private lender you may be able to obtain a loan with lower scores. The best advice is to find a trusted mortgage broker and learn what you can do to raise both scores, and where you need to be to qualify.

Best of luck,

Rachel LaMar, J.D.
LaMar Real Estate, Inc.
0 votes Thank Flag Link Mon Jun 6, 2011
ABSOLUTELY!!!!! You need to work on getting your scores up before you decide to get financing!
0 votes Thank Flag Link Mon Jun 6, 2011
Not only do both borrowers have to meet the min credit score, but debt to income ratio will include both borrowers.


DAVID COOPER Foreclosure and Bank REO's Investor-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
0 votes Thank Flag Link Sun Jun 5, 2011
It will depend if you have a direct LENDER or the lender shops around to fund your loan. Some lenders will take a Co-borrower with NO credit score, if the main borrower has a good credit score. A No credit score is the only instantance I have experienced, where one of the borrowers didnt have the MIN credit score.

Take care and get educated!
Kenneth Brittman Jr
125creditrepair@moneybackcreditrepairfast.com
0 votes Thank Flag Link Sun Jun 5, 2011
Absolutely. Both applicant has to qualify both credit and income wise.
0 votes Thank Flag Link Tue May 31, 2011
Gregorio is absolutely right!
0 votes Thank Flag Link Tue May 31, 2011
Yes Both Borrowers have to a good credit score.
0 votes Thank Flag Link Tue May 31, 2011
Yes they do or if one has a bad credit score you may need to come up with a co-signer!
0 votes Thank Flag Link Thu May 26, 2011
Usually yes both borrowers have to meet the min credit score.
0 votes Thank Flag Link Thu May 26, 2011
Talk with a lender but yes, if there is more than one name on the contract all will need to be pre-approved. FYI, lenders look at more than just the credit score, a lot more to it like debt-to-income ratio and etc. Best of luck.
Spirit
0 votes Thank Flag Link Fri May 20, 2011
As you can see, it's best to discuss your loan with both direct lenders and a broker. Sellers tend to want to see pre-approval from a direct lender these days, but a broker will have access to more lenders. Just go with the lender that will make it work for you. If there is more than one lender that can accommodate your situation, you'll be able to compare those lenders to each other to see who has the best fees to do it.
0 votes Thank Flag Link Fri May 20, 2011
In theory yes, but not always. Loan applications are a lot more complicated than most borrowers are aware of. The application is reviewed in its entirety. The type of loan makes a difference. I closed a loan in March where one of the buyers did not have a credit score. Theoretically that is not possible but the rest of the application was so far above average it was approved and closed.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri May 20, 2011
Hi,

Best to discuss this with the lender you have selected to purchase a home. In the end, they will tell you what you need in order to secure a loan approval.

Best to you,

Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
0 votes Thank Flag Link Fri May 20, 2011
Short answer: Yes. Minimum credit and income.
0 votes Thank Flag Link Fri May 20, 2011
Yes but I have loan programs go down to 560 fico now! With DU approval...

David Stein
Mortgage Banker
NMLS ID #343820
DRE LISC #01864975
858-337-9744 Cell
858-206-2298 Office
davbstein@yahoo.com
http://www.zillow.com/profile/David-Stein/
Proud Member of the BBB "A+" Rating
0 votes Thank Flag Link Fri May 20, 2011
In most cases the lower of credit scores will be the one that is used to qualify. There are, however, a couple lenders we work with that allow us to use the score of the primary wage earner (whoever makes the most money). Like all loans there are a bunch of moving parts. Feel free to touch base for more details.

Bill Provost
Loan Consultant
760-282-4415 Direct
951-880-0813 Fax
NMLS# 101876
CA DRE License # 01867503
WA DFI License# MLO-101876
bill@billprovost.com
0 votes Thank Flag Link Thu May 19, 2011
Deerslayer,
If both people are on the note then both have to meet the credit requirements. If one person credit is questionable you may want to explore using only one person for the loan.
This site has some lenders that I work with and I know they would be happy to go over your exact situation http://www.yoursdps.info/3/W0000019741/P0000367194.htm

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE #00648687

"When a man has put a limit on what he will do, he has put a limit on what he can do" Charles Schwab
0 votes Thank Flag Link Thu May 19, 2011
yes, each has to meet the minimum.
0 votes Thank Flag Link Thu May 19, 2011
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