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Which score is used for mortgage approval?

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getting2work
Contributor

Which score is used for mortgage approval?

When applying for a mortgage, it is my understanding that the middle score is used right? If my spouse and I are applying together how do they use our middle scores if they vary. Say his middle is barely 600 and mine is 700 or above does his need to be a minimum, generally speaking, of 620? How will they use the different scores to come up with the interest rate?
Working on buying our first home!
10/15/2012 TU 680 EX 658 EQ 684
06/26/2009 TU 644 EX 601(fako) EQ 614
06/06/2009 TU 612 EX 526 (fako) EQ 614
05/01/2009 TU 594 EX ???? EQ 563
01/01/2009 TU 527 EX 453 (fako) EQ 477
Message 1 of 10
9 REPLIES 9
itsjustmeibe
Regular Contributor

Re: Which score is used for mortgage approval?

Hi-

They will use the lesser of your 2 middle scores. If his middle is 600, and yours is 700, they will use 600. To get the best interest rates for FHA, you need at least a middle of 620, for conventional, probably 680.

Message 2 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?

 


@itsjustmeibe wrote:

Hi-

They will use the lesser of your 2 middle scores. If his middle is 600, and yours is 700, they will use 600. To get the best interest rates for FHA, you need at least a middle of 620, for conventional, probably 680.


Really? I was under the impression that you needed 720+ for the good rates, 760+ for the best rates now. I am very interested as I am going to look into buying a house later this year. Working to get a collections off my wifes credit to put her back in the mid 700s.
 

 

 

Message Edited by Jayjinx on 04-29-2009 10:16 AM
Message 3 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?


@Anonymous wrote:

 


@itsjustmeibe wrote:

Hi-

They will use the lesser of your 2 middle scores. If his middle is 600, and yours is 700, they will use 600. To get the best interest rates for FHA, you need at least a middle of 620, for conventional, probably 680.


Really? I was under the impression that you needed 720+ for the good rates, 760+ for the best rates now. I am very interested as I am going to look into buying a house later this year. Working to get a collections off my wifes credit to put her back in the mid 700s.
 

 

 

Message Edited by Jayjinx on 04-29-2009 10:16 AM



Not for FHA.

For FHA, a 620 gets you the same rates as a 720.
Message 4 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?


@Anonymous wrote:

@Anonymous wrote:

 


@itsjustmeibe wrote:

Hi-

They will use the lesser of your 2 middle scores. If his middle is 600, and yours is 700, they will use 600. To get the best interest rates for FHA, you need at least a middle of 620, for conventional, probably 680.


Really? I was under the impression that you needed 720+ for the good rates, 760+ for the best rates now. I am very interested as I am going to look into buying a house later this year. Working to get a collections off my wifes credit to put her back in the mid 700s.
 

 

 

Message Edited by Jayjinx on 04-29-2009 10:16 AM



Not for FHA.

For FHA, a 620 gets you the same rates as a 720.
 
Really?
I've been doing research for a good while and haven't seen that anywhere thanks for the information very helpful sir. If you have time could you tell me a few more things? Are the rates the same as a conventional loan? Are the DTI ratios for FHA still 29/41? 

 

Message 5 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?

FHA, if I'm not mistaken has a DTI (though a good file can can give a bit more leeway) of 31/43, AFAIR.

I believe that with conventional (we ended going FHA), the rates were marginally better -- but mainly because you put more down. Plus, you need much better credit to go conventional. We were at the time of apping in 660s.

And I'm a "madam," not a "sir." Smiley Wink
Message 6 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?

When I went for approval they told me that if I improved my score (then it was 620) by paying down some cards my approal rates would go from 5.5 to 5%.  This was in January so things have changed since.  We were applying for FHA. 
Message 7 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?

Thanks madam..
Message 8 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?


@Anonymous wrote:
Thanks madam..


You're welcome! Smiley Wink

BTW, the average thread around here as re qualifying for a mortgage seems to be referencing FHA loans. Usually, if it's a conventional being discussed, it'll be overtly mentioned. So if you see an interesting tidbit, and you don't actually *see* "conventional" specifically mentioned in the thread, chances are it's FHA.

DallasLoanGuy and ShanetheMortgageMan are awesome and give oodles of help here (they're our "Mortgage Gurus" ) ... they're more than conversant (read: expert) in FHA qualifications. So if you hear them say *anything* about mortgage rates, approvals, qualifications, etc, their words are *golden*.

I *think* the ugliest factors about FHA over conventional, though, is the upfront costs. The closing costs *seem* to be higher ($7K-12K -- that seems to be the range for the most part) and you do pay 1.75% of the purchase price upfront at the closing table (usually rolled into the loan, though). But MI is lower and MUCH easier to get.

BUT with the higher closing costs, you can ask the seller to pay them -- up to 6% of the purchase price is allowed. In that case, though, usually, you pay more in the purchase agreement.

Like if I'm buying your house and I want you to pay part or all of the closing costs: You're asking $210K. I offer $222,600 with you contributing 6% ($12600) towards the closing costs. I'm paying MORE, but all I have to bring to the table this way is my down payment.

If you have ANY questions, just holler or post a new thread with the question (you know how it works!). Don't be shy and don't even think for a SECOND that there is such a thing as a stupid question. This is the BIGGEST purchase you will EVER make (short of another home) and it's never a bad thing to ask all the questions you can!!

And feel free to vent here! We all do!! Smiley Happy

Oh ... and welcome to the forums!!
Message 9 of 10
Anonymous
Not applicable

Re: Which score is used for mortgage approval?

I've been doing as much reading as I can here, very helpful information indeed. About to start a new thread for advice.

 

BTW ShanatheMortgageMan's title should be changed from "Super Contributor" to "You should be paying me for this". Smiley Wink

Message 10 of 10
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