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:
BOTH must meet the minimum credit score requirement, a co-signer does not have magic powers to erase bad credit.
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.
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...
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.
Jean Paul Schwarz
Pacific Mercantile Bank
NO BROKER, NO MIDDLEMAN DIRECT LENDER!
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.
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
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.
VID COOPER Foreclosure and Bank REO's Specialist-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
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
Best of luck,
Rachel LaMar, J.D.
LaMar Real Estate, Inc.
DAVID COOPER Foreclosure and Bank REO's Investor-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
Take care and get educated!
Kenneth Brittman Jr
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
NMLS ID #343820
DRE LISC #01864975
Proud Member of the BBB "A+" Rating
CA DRE License # 01867503
WA DFI License# MLO-101876
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
The San Diego Property Shop
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