Home Buying in Tampa>Question Details

Wanda.kurze, Home Buyer in Beverly Hills, FL

Does the Homepath Mortg through FannieMae also look only at the lowest credit score when 2 people are going on the loan?

Asked by Wanda.kurze, Beverly Hills, FL Wed Jun 12, 2013

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Yes - when two applicants are applying jointly, the lender will generally always use the lower middle score of the two.

It's important to also keep in mind that Fannie Mae does not lend money directly. "Homepath" is simply a set of guidelines that lenders must follow when financing these specific properties. Your loan itself will ultimately be through whatever lender or bank you use.

Hope that helps!
1 vote Thank Flag Link Wed Jun 12, 2013
It's the lowest mid score of the two borrower's. The advantage of Homepath is 3% down, NO MI and NO appraisal. The rate is higher than standard conventional but with NO MI (upfront or monthly) it's still a plus. Downside... closing costs are a bit higher because you pay all taxes. Why? These are Fannie Mae foreclosed homes and Fannie Mae is now owned by the Gov. Gov is exempt from paying taxes. So they won't pay your the standard seller transfer taxes.

Still a great loan.
0 votes Thank Flag Link Wed Jun 12, 2013
As stated below Homepath along with most other mortgage products all require that any borrowers on the application must use their middle score or highest of 2 if only two are reporting.

I do however have a product that will allow you to place a three percent down payment and let you go to a 57 percent debt to income ratio with a 620 or higher score so if one of the borrowers does not meet that criteria then with the lenders higher debt to income ratio allowance you may be able to get away with only using the highest and best score between the borrowers feel free to reach out to me directly if you would like to learn more about this program as right now the interest rate is at about a 4.250% APR.


Scott Lynn
Long & Associates
0 votes Thank Flag Link Wed Jun 12, 2013
HomePath guidelines typically utilize the middle score of both mortgage applicants. For specific details of current underwriting policies and procedures, consult with an experienced HomePath lender such as Katie Hughes with Prospect Mortgage.

Best wishes for reaching your home ownership goals!
Lisa
0 votes Thank Flag Link Wed Jun 12, 2013
Loans are based upon the mid score. Your financing rate is based upon the lowest mid score of the two people applying and the person with the largest income is primary on the loan.
0 votes Thank Flag Link Wed Jun 12, 2013
All loans are based on the middle score of each borrower and then the lowest of those 2.

Let me know if I can help. We do these type of loans and all others...

Chris Suarez
352-754-6191

Suarez Home & Finance Corp.
0 votes Thank Flag Link Wed Jun 12, 2013
Hi Wanda
Yes. All mortgage programs go on the lower MIDDLE credit score of each borrower in terms of evaluating the loan.

Tony
0 votes Thank Flag Link Wed Jun 12, 2013
Pretty sure any lender has the same policy of using the lowest of the two middle scores when there are two borrowers applying for a loan.
0 votes Thank Flag Link Wed Jun 12, 2013
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