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Joint morgage-what score do they look?

New Contributor

Re: Joint morgage-what score do they look?

Just a temporary decrease so that the lenders would weigh my higher score more heavily. (He said they look at the score of the higher earner as the primary score.) So if my husband had lower income, and my scores were better, they would go by mine. Our income was within hundreds of dollars of each other and my husband is hourly while I am salary. A decrease in his overtime would knock him under my salary and then my scores would count more. Then we would pick our income back up once the deal was sealed. Just a temporary manipulation -- which I'm learning is how the credit game works a lot of times!
Message 11 of 14
Moderator Emeritus

Re: Joint morgage-what score do they look?



Sillygirl wrote:
Just a temporary decrease so that the lenders would weigh my higher score more heavily. (He said they look at the score of the higher earner as the primary score.) So if my husband had lower income, and my scores were better, they would go by mine. Our income was within hundreds of dollars of each other and my husband is hourly while I am salary. A decrease in his overtime would knock him under my salary and then my scores would count more. Then we would pick our income back up once the deal was sealed. Just a temporary manipulation -- which I'm learning is how the credit game works a lot of times!


Gotcha.  But IMHO, I don't think it's a great plan because (1) they may look at 2006 W4s or tax returns which will show he earned more; (2) as MidnightVoice pointed out, you may qualify for a smaller loan amount; (3) as MidnightVoice pointed out, you raise your DTI ratio; and (4) you lose income at a time when you definitely need it the most --- for downpayment, closing costs, moving costs, utility deposits, etc.
 
Better plan:  work on getting both credit scores up.  Good luck!
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Message 12 of 14
Regular Contributor

Re: Joint morgage-what score do they look?

We had the same problem when we got our mortgage.  At the time my scores were higher, but his W-2s showed him making more.  His paycheck stub reflected that his income was mainly frm commission, so our broker just made sure the lender knew that if sales went down, so did his income.  Of course he has a base salary and we needed to prove that it would never go below that.  That way our DTI was still acceptable.  If you have a broker and he wants to make money, he'll figure out how to work around it.
Message 13 of 14
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Regular Contributor

Re: Joint morgage-what score do they look?

Prime Loans start at 620 Fico but its not just the score that makes you prime. If its you and your wife on the loan they will look at her mid Fico. Thats because when going subprime lenders use who ever makes more money. Ask your broker to push for an uplift.
 
SHOP AROUND.... but do it when you are ready to make the purchase! SHOP>>> SHOP>>>SHOP!
Message 14 of 14