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Inclusion in mortgage

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bm12484
Member

Inclusion in mortgage

My boyfriend and I are buying a two family house in New York. It's expensive, over $1M, but we've worked out the numbers and with the upstairs rental we can both comfortably carry the downstairs.

 

The problem is that my credit isn't great so he and his mother are buying the property but she is recently retired and collecting dividends from investments. The bank is a bit concerned about the income levels and obviously me being on the mortgage would solve this whole problem. My lowest score is a 659 and highest is 690. On the lowest report, all of the debt is from either 6.5 or 7 years and due to fall off very soon, none of it is recent. 

 

Can a bank simply deny including someone like me on a mortgage, with the scores listed above and a $95,000 salary-only debt is $30,000 in student loans and $20k in assets or will they include me but obviously it will impact the interest rate offered and perhaps other parts of the deal.

 

Advice would be appreciated.

 

Thank you

Message 1 of 4
3 REPLIES 3
ezdriver
Senior Contributor

Re: Inclusion in mortgage

What is your MIDDLE score and what is the source of the scores? Lenders drop the lowest and highest and use only the middle. If your boyfriend and his mother are buying the house, my assumption is that you will be the 3rd person on that mortgage application? Lenders can deny any loan application anytime they wish. They have to want to do the deal.

 

Message 2 of 4
bm12484
Member

Re: Inclusion in mortgage

My middle score is 662 and it's my Fico score, taken from this site. I would like to be the 3rd person on the application, but I don't think Wells will accept me because my score is too low. At this point, they haven't denied the application. My question was whether they can look at someone's financials before being on the application and say we can't process this with this individual on the application?

Message 3 of 4
ezdriver
Senior Contributor

Re: Inclusion in mortgage


@bm12484 wrote:

My middle score is 662 and it's my Fico score, taken from this site. I would like to be the 3rd person on the application, but I don't think Wells will accept me because my score is too low. At this point, they haven't denied the application. My question was whether they can look at someone's financials before being on the application and say we can't process this with this individual on the application?


OK ... thanks for that information.

 

Your middle score from this website means nothing as the lender-pulled scores will be different. Until you have a lender-pulled credit report, you really can't know what your mortgage-application scores are.

 

Scores in the mid 600s are find for FHA loans but not for conventional loans. You need to have a 680 or better middle score.

 

Here's another "wrinkle". The middle score that the lenders will use is the lowest of the middle scores for all applicants. That is why ALL applicants need to have middle scores that meet the lenders minimum requirements.

 

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