Mortgage with both incomes but only one credit score

I guess if you go for the loan in your name, then only your income and credit score will be considered. And if the borrower does not have the higher income, then he can make the higher wage earner as the cosigner.

"But my question is can I get a mortgage considering both incomes but only the higher FICO score."
If both incomes are to be considered to qualify for the loan then credit score of both will be looked at as they will be co borrowers on the loan.

Miller

"secondary earner is $180000 per year with a FICO score of 800. "

How much mortgage are you looking at? Is it that the secondary earner won't be able to qualify for the loan on his own?

Is his income documentable? Tell us more about your situation so that we can tell what would be appropriate for your situation. It might be that you will not need a co borrower for the amount of loan you are trying to borrow. And he is able to qualify on his own.

"But my question is can I get a mortgage considering both incomes but only the higher FICO score."

That will not be acceptable to lenders Ralph.

You are trying to say that by including both incomes you be allowed to qualify for a higher loan amount but the risk lender has in providing the financing because one borrower has a lower credit score be ignored.

Hi Ralph,

You can take the loan along with the other person as co-borrower. In that case, the lender may consider both of your income and scores and will calculate a combined average. Thus it will help you to qualify for a loan with a better interest rate.

Thanks for the info guys. But what i was asking for is, suppose i apply for the loan but i use the primary earner's income and the secondary earner's score as it's much higher?but you say for that either i'd cosign or both of us sign on the loan?

i just forgot to reply Niccss, I'm looking for a mortgage of around $200,000. and i would be able to document it also. Also, do you think getting a PMi is that important?

Hi Ralph,

Lenders generally require PMI from those homebuyers who borrow loans more than 80% of their home value. It means that if you make less than 20% of down payment, you will be required to pay the PMI.

Yes Ralph, you both will have to sign on the loan.

Ralph what you need to do in such a case is see if you can get a stated income loan with just the higher score borrower as you will get the better interest rate on your loan. ( i am assuming the second income of 180k is a typo and supposed to be 18,000) You can be on the title.

If a stated income loan is not an option then you are stuck because primary earner's score is used to determine eligibility.

Or you can see if its possible to show 2k more income for your coborrower or 2k less for you.

Hi Ralph,

If you consider only the primary wage earner's income and his score, you can go for a conforming loan. Conforming loans are that type of home loans that are based on the guidelines set forth by government institutions like Fannie Mae and Freddie Mac. If you consider taking such loan, the lender will mainly look at your debt to income ratio (dti). And if you have a favorable dti, you may easily qualify for this loan. To know more on conforming loans, you may refer to http://www.mortgagefit.com/conforming-loan.html

Hi Ralph,

When you have low score, you can consider taking an FHA loan. To qualify for this sort of loan, the lender will not look at your credit score as primary criteria for qualification. Rather, he will check your debt to income ratio which should not exceed than 41%.

Based on the limited information provided, I would second that FHA would be a viable option to investigate.

You might need to consider using a FHA lender that manually underwrites their loans in the event that you find yourself over the max. DTI allowance.

Regards,

Scott Miller

I currently have home valued at 110000. Hopefully, my next home loan will be right at 180,000 with 20000 for down payment. With a income of 62000 what will my credit score need to be to obtain the loan amount of 180000