Potential First Time Homebuyer with questions....

[Kennie02]

I am wondering how your mortgage rate is determined. Is it based on the credit score of the person with the higher income? My husband and I want to purchase a home. I have a higher score (which will improve in June when my util drops to <10%) but he has the higher income (His $64k vs my $33K). Also, should we even apply when he is still just one year out from his last late? 

Thanks in advance for any advice...

[StartingOver10]

The lender will pull all of your scores and then use the mid-score of the lowest of both of your credit pulls. The interest rate is based on the lowest of the mid-scores. The rate has nothing to do with who has the higher income. Although the amount you qualify for is income related.

If you get a conventional loan the MI is also credit score sensitive. If you put down more than 20% you don't pay MI. If you get an FHA loan, it is not score driven. You qualify if you meet the min requirements of the lender for an FHA loan.