Profile picture for skyzophrenyk

If co-borrowing, do banks take the lowest credit score?

I would like to purchase a home, but most homes seem just slightly out of my price range at the moment. I will be living with somebody, and would like their income to count, as it would mean we could borrow significantly more money, but their credit score is very poor due to financial hardship. My credit, on the other hand, is pretty decent. My FICO score is 742 currently.

My question is, will I have to borrow alone in order to get a loan, or can their income somehow count, without their credit score ruining the possibility of a loan for us?
  • August 16 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (1)

Profile picture for Go Huskers
They will use the lowest mid score, but it's actually more involved than that if you are trying to use another person's income to qualify. 

First the scores.

If you had a score of Experian 760, Equifax, 742 and TransUnion of 736, that would give you the 742 mid score. It is the median of the scores (not average). Whatever the median of your co-borrower, will be what is used assuming it's lower than yours. 

As for using their income, this can be done with a FHA mortgage, but not with a Fannie Mae conforming mortgage. Since most conventional mortgages are originated as Fannie Mae loans, you will have to specifically find a broker or lender who can underwrite this through Freddie Mac. 

Post what state you are in and I'm sure someone will refer you to a good lender.
  • August 16 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.