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credit issues

My husband and I are looking to buy a house, however my credit score according to the bank was 607 and his is a 744. His is fine but they told us his debt-to-income ratio was too high and I wouldn't be able to be on the loan because of the low credit score. Do lenders not take into account the income from the spouse when figuring this stuff out? I know that we could afford the payments so it's just really frustrating to me.  Any suggestions?
  • September 13 2013 - US
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Answers (2)

When applying for a loan lenders look at every aspect from every borrower that will be on the mortgage. Just because one spouse has good finances or credit, it doesn't necessarily mean that it will cover for the other spouse's. Also, if they choose to not put you on the mortgage because of your credit score that means only your husband's credit, income, and finances will be the only one looked at. So the reason that your debt-to-income may be high now is because you cause probably have debt covering two people but the income they are looking at is only your husband's income which raises the debt-to-income ration. I would recommend to look at other lenders. Banks are not the only sources for loans. There are plenty of lenders like myself that can get you the loan that you need. There are even lenders out, including myself, that have been able to give out loans with credit scores as low as 580. So start talking to other lenders and see what they can do for you!

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me.

Good Luck!
  • September 13 2013
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Profile picture for wetdawgs
In order to use both incomes, the lenders will use the middle score from the party with the lowest scores for making lending decisions.  Therefore, that would be the 607.       

It sounds like it is time to develop an action plan for increasing your FICO scores.   Have you identified why they are so low?    If you need some help getting together an action plan, I've been told the forums (free) at myfico.com are excellent.

  • September 13 2013
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