Posted on: 27th Dec, 2009 05:02 pm
My husband and I have credit scored in the 500s. Our co-signer has incredible credit 800+ we are trying to find a
FHA loan with him as a co signer. However have been told that we can not because our score is to low.
If he is the co-singer why would this be an issue of our credit. Wouldn't he be the credit they are using?
FHA loan with him as a co signer. However have been told that we can not because our score is to low.
If he is the co-singer why would this be an issue of our credit. Wouldn't he be the credit they are using?
Hi quicktht,
As far as I know, if there is co-signer, then his/her credit score is taken into consideration and not that of the primary owners. In that case, your loan should have been approved because your co-signer has a good credit score. I would suggest you to contact your lender and clarify the whole issue.
Thanks
As far as I know, if there is co-signer, then his/her credit score is taken into consideration and not that of the primary owners. In that case, your loan should have been approved because your co-signer has a good credit score. I would suggest you to contact your lender and clarify the whole issue.
Thanks
I know i tried to do the same thing and the lender told me that the main name had to have at least a certain score as well as the cosigner. The point of the cosigner has been explained to only assit with the orginial signer.
The credit of BOTH the main Borrower and Co-Borrower will be used in order to qualify. Depending on where abouts your credit may be in the 500's will determine how much of a down payment is required. There is still a lender or two whom will lend with a borrower down to a 500 FICO with a larger down payment. Although you have a signer with an excellent score, you're still a liability to the bank as well considering you too will be on the loan. I hope this helps...
500+ Credit = 10% Down Payment
540+ Credit = 5% Down Payment
580+ Credit = 3.5% Down Payment
500+ Credit = 10% Down Payment
540+ Credit = 5% Down Payment
580+ Credit = 3.5% Down Payment
