My fiance and I are planning to buy a home together before we're married. My Credit Score is 885, but he foreclosed on a mortgage 4 years ago and at last check he was in the 600's. We would need our combined income to afford the house we want. Would our credit scores get averaged together? Will having a mortgage with someone with a low score effect my score?
2007-03-15 09:16:00 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
I thought 885 was a little high too, but I got it through Experian Vantage Score and they list the scores as 501-990.
2007-03-15 09:59:25 · update #1
ask your mortgage loan officer to run the application BOTH ways
and check out the difference for yourself
theres no sense in guessing
(thats what i would tell a client to do)
2007-03-15 09:31:11 · answer #1 · answered by EF 2 · 0⤊ 0⤋
I don't think they would average your scores together and I don't think just having a mortgage with someone with a lower score will affect your score. The mortgage company will probably put the mortgage under your name primarily since your credit is the best. If anything him having a lower score might cause you to have a higher interest rate, but since it's in the 600's I'd say you'll be fine. I was told you have to have a 580 to get 100% financing and it sounds like you're both well above that.
2007-03-15 09:48:37 · answer #2 · answered by Kiwi 5 · 0⤊ 0⤋
Average out the 2 credit scores, and see what they come out as. Im not sure how the new vantage score works, but using the old fico score, it had to be above a 620 to get a normal conforming mortgage loan. The foreclosure is pretty old so they should overlook it.
Tom
Ex-Loan Officer
2007-03-15 10:57:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
YES having a mortgage with someone who has foreclosed a mortgage is a VERY bad idea, because it will make your score bomb as well as living in a house that isn't easy for you two to afford on one paycheck. Your not supposed to live in luxury for your first house thats how people get foreclosed on.
You have to be willing to take on your fiance's liability which might mean that you have to put down more money as a whole to buy a house. When it feels like it might be a bad idea; it usually is one.
2007-03-15 09:22:51 · answer #4 · answered by espressoaddict22 3 · 0⤊ 0⤋
Since you have excellent credit, the best bet is to apply for a mortgage loan yourself. With your credit score, you can qualify for better programs such as "stated income" which means you don't need to include your fiance's income when applying. You'll also qualify for a better rate with your score alone. If you both apply, it will hurt your chances in getting a good loan program......good luck!
2007-03-15 09:26:20 · answer #5 · answered by ? 5 · 0⤊ 0⤋
Are you in the USA? Credit scores only go up to 850 here, so you've got somethign mixed up if you're American.
If you make more money, your credit score is the primary. If he maeks more, his is. So if you make less, it would be better for you to do a no-income-verification loan or a 'stated income loan' in order to get the best possible rate and still get approved for the dollar amount you want.
2007-03-15 09:40:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes it will effect you rate, as it should. Your fiance has not shown responsibility for his debts in the past.
You will get approved and if you need his income to get the home you want, you most likely do not have a choice. What you can do is after you get the loan make your payments as agreed for 2-3 years and then refinance.
If you apply by yourself and lie about your income as some have suggested, that's called bank fraud. If anything happens and the lender finds out that you did this you could go to prison.
2007-03-15 09:22:33 · answer #7 · answered by ? 7 · 0⤊ 0⤋
I thought credit scores topped out at 850!?!
Buy the house with only you on the loan, you can add him to the title afterwards.
2007-03-15 09:25:43 · answer #8 · answered by Wurm™ 6 · 0⤊ 0⤋