Question Details

Waskflask, Home Buyer in Pembroke Pines, FL

my wife's credit score is 700 and mine is 604 will our rates still be high for an fha loan?

Asked by Waskflask, Pembroke Pines, FL Wed Jul 1, 2009

I make more money per year than my wife.

Help the community by answering this question:


Yes, your score will be used to qualify the loan and determine any applicable pricing adjustments but we don't have any pricing adjustments for credit score so my FHA buyers receive the same rate whether they have a 580 score or an 800. It is all based on each lender though. Right now, my FHA rates are 5.5% for .5 in discount points with no origination fees - regardless of credit score.

If you need any assistance, you are welcome to contact me.
Luke Allison
Bank of America Home Loans
0 votes Thank Flag Link Thu Jul 2, 2009

Both answers below are correct. Additionally, is there any possibility that the income of your wife alone may qualify? If so, you could put the mortgage in just her name to avoid a rate penalty or rejection of your application. If the loan must be in both of your names, Pat was correct that you'll pay much more for the loan. Good luck, and feel free to email me if you have questions about the process.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
0 votes Thank Flag Link Thu Jul 2, 2009

Rob is correct, the lender will always base your rate and qualification on the lower of the two borrower's scores. Some lenders will still provide financing at 600 - Flagstar Bank will consider a loan with a score above 600. Expect to pay an additional 1% in 'points' or receive an interest rate .5% higher.
0 votes Thank Flag Link Thu Jul 2, 2009

Your loan will be graded on the lower of the two middle FICO scores. Both you and your wife have three scores each.

At this time, your first order of business will be finding a lender that will do an FHA loan with a middle score of less than 620. Unfortunately, we are not one of them. But again, concentrate your effort here before proceeding further.

I am assuming that the scores you listed above are recent and derived from a full (tri-merge) credit report. If not, your true score might actually put you above 620.

Good luck,

Rob Spinosa
0 votes Thank Flag Link Wed Jul 1, 2009
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