topic Re: Mortgage Middle Score?? in General Credit Topics

Mortgage Middle Score??

Anonymous — Mon, 14 May 2007 17:08:05 GMT

My husband and I will be house hunting in the very near future. I was told that they use the middle score. How does that work with 2 people with 2 different scores for the middle score. For example if my scores are:

TU -700

EQ- 695

EX-668

and his are:

TU-635

EQ-655

EX- 628

Which score would they use to determine which rate we would get?

Re: Mortgage Middle Score??

Anonymous — Mon, 14 May 2007 17:23:42 GMT

I do believe they use the person with the higher income.

Re: Mortgage Middle Score??

Anonymous — Mon, 14 May 2007 17:27:05 GMT

If that is correct it would be great because my income is also higher.

Re: Mortgage Middle Score??

Anonymous — Mon, 14 May 2007 17:31:17 GMT

I'm not postive on this but I thought I heard that. But I also believe they will use both scores to determine the type of loan and how much to be approved on. AcidSniper, a new poster on here has first hand knowledge of the mortgage business, hopefully he/she will chime in.

Re: Mortgage Middle Score??

Tuscani — Mon, 14 May 2007 18:13:03 GMT

Yep.. higher for my mortgages.

Re: Mortgage Middle Score??

Anonymous — Fri, 08 Jun 2007 19:46:06 GMT

Here is the down low....

If you are a prime borrower (620 Fico) with great credit history and have a co-borrower on the loan. The mortgage company will use the mid fico but the lower of the two.

Subprime borrower with a co-borrower... The mortgage company will use the main bread makers fico to do the loan if the Loan To Value is below 90%. If the LTV is above 90%... then they will use the lower of the two mid fico.

Some subprime lenders still use the main bread makers fico to do the loan. Keep in mind that a lot of subprime lenders are closing the doors!!

Good Luck

Re: Mortgage Middle Score??

IsleSeat — Fri, 08 Jun 2007 20:37:10 GMT

Question to MortgageGuy: define for us the term "prime" (you mentioned FICO 620, is that 'prime'?) and "sub-prime". Also, please note my posting on RF - Foreclosure. thnx

Re: Mortgage Middle Score??

Anonymous — Fri, 08 Jun 2007 21:58:13 GMT

Well...

Prime (A paper) starts at 620 fico and up. Lenders look at everything from collections to credit card payments. You can have one 30 day late on you mortgage but no rolling lates, no repos, and must have all collections paid off. BK needs to be discharged or dismissed for 5 years and NO LATES or COLLECTION after that date. If you have lots of reserves and the BK is less then 5 years you can still get an a paper loan.

Alt-A is when your fico sucks but you meet everything else. So youre A-paper without the fico.

Subprime is when you have not so great credit. You can get a subprime loan 1 day out of BK of or 0 - 3 years out of a NOD or Foreclosure.

IsleSeat--- Hope this helps you. Feel free to email me

Re: Mortgage Middle Score??

Tuscani — Fri, 08 Jun 2007 23:17:22 GMT

OneMortgageGuy wrote:
Well...

Prime (A paper) starts at 620 fico and up. Lenders look at everything from collections to credit card payments. You can have one 30 day late on you mortgage but no rolling lates, no repos, and must have all collections paid off. BK needs to be discharged or dismissed for 5 years and NO LATES or COLLECTION after that date. If you have lots of reserves and the BK is less then 5 years you can still get an a paper loan.

Alt-A is when your fico sucks but you meet everything else. So youre A-paper without the fico.

Subprime is when you have not so great credit. You can get a subprime loan 1 day out of BK of or 0 - 3 years out of a NOD or Foreclosure.

IsleSeat--- Hope this helps you. Feel free to email me

Wow.. prime is only 620 huh? That surprises me.

Re: Mortgage Middle Score??

Anonymous — Fri, 08 Jun 2007 23:36:37 GMT

OneMortgageGuy wrote:
Here is the down low....

If you are a prime borrower (620 Fico) with great credit history and have a co-borrower on the loan. The mortgage company will use the mid fico but the lower of the two.

Subprime borrower with a co-borrower... The mortgage company will use the main bread makers fico to do the loan if the Loan To Value is below 90%. If the LTV is above 90%... then they will use the lower of the two mid fico.

Some subprime lenders still use the main bread makers fico to do the loan. Keep in mind that a lot of subprime lenders are closing the doors!!

Good Luck

Hello there. I am new to this forum and until now have just been lurking but your response on this is quite interesting. I will be house-hunting with a co-borrower in a few months. My FICOs are

TU-768

EQ-764

EX-759

No late payments, no delinq etc. My income is also higher than my co-borrower whose scores are in the 650-699 range? Are you saying that they will use the 600+ scores to evaluate us? Thanks in advance for your response.

Re: Mortgage Middle Score??

Anonymous — Fri, 08 Jun 2007 23:37:32 GMT

If you have a 620 with no BK, no lates, great credit history, reserves for 6 months, and your DR is low. Why not?

Re: Mortgage Middle Score??

Anonymous — Sun, 10 Jun 2007 15:11:55 GMT

My understanding is that Onemortgageguy is right (apparently he does mortgages ):

I believe for prime they use the lower borrower's middle score.

Re: Mortgage Middle Score??

Anonymous — Sun, 10 Jun 2007 16:43:39 GMT

Just to let everyone know... Thing may be different at other companies (I work for Countrywide) but for Prime Conforming Loans all lenders follow FannieMae guidelines. Go to www.fanniemae.com for more information. This website is a pain to use but has a lot of good information.

As for subprime... I'm in Dallas and I see thing on the news all the time about how bad the market is or what another lender has done. Before you could find lenders that would use your higher fico and I know for a fact that a subprime lender was doing refi's on 1st mortgages with no appraisal. I even know of one that was getting what ever appraised value they wanted.

Not my list below...http://ml-implode.com/ Top 25 Subprime Lender list
(as of Q2 2006; from the Mortgage Banker's Assoc. Red are shutdown and/or bankrupt, blue are no longer operating independently) -

Wells Fargo [not doing much subprime anymore; also not #1 due to reclassifying servicing business]
HSBC Household Finance [HSBC's subprime erased at least half of '06 earnings]
New Century [funding pulled; lending halted, lawsuits, criminal probes, impairments]
Countrywide [subprime to hurt results; layoffs]
Fremont General [2007-03-02; residential subprime activities ceased]
Option One [Sold! to Cerberus.]
Ameriquest [ACC's formerly-major retail subsidiary]
WMC [subsidiary of GE Money; layoffs, subprime causes $373mln hit to Q1'07 profits]
Washington Mutual [some branch closures starting late 2006]
CitiMortgage [tightening standards]

First Franklin [acquired by Merrill Lynch from National City for $1.3bln]
GMAC [Major layoffs in ResCap; more layoffs; Looming writedowns]
Accredited Home [in a serious cash crunch]
BNC [Lehman bros. subsidiary]
ChaseHome Finance
Novastar [announced impairments; likely no dividends post-2007, no taxable income through 2011; shareholder lawsuits]
OwnIt, 2006-12-07 [partially-owned by Merrill and BofA]
Aegis [not doing subprime anymore]
MLN, 2006-12-29 [Much of the sales force has gone to Lehman]
EMC

ResMAE,2007-02-13 [acquired by Citadel (still operating)]
FirstNLC [almost totally shut down]
Decision One [owned by HSBC; rumored to be up for sale; closing 13 of 15 offices?]
ECC/Encore [fire-sale bought out by Bear-Stearns]
Fieldstone [2007-02-16, bought by C-Bass]

(Partly based on information from here. See a list of major Alt-A lender

Re: Mortgage Middle Score??

Anonymous — Sun, 10 Jun 2007 17:54:00 GMT

This is very interesting.
My first mortgage was with OptionOne. Re-fi in 1 year- Very sub-prime

second was sold to Ameriquest- Getting settlement in calss action this fall- look for my post

Now homecomings- Owned by GMAC. Not sub-prime.

Re: Mortgage Middle Score??

Anonymous — Sun, 10 Jun 2007 18:46:08 GMT

Timothy - I would love to hear more about your Ameriquest settlement. Whenever you post it PLEASE email me. Thanks

As for everyone else... I know Countrywide is on the list but if you click on the link it shows us laying off 108 people. Better then 10,000 or just closing our doors.

Re: Mortgage Middle Score??

Anonymous — Sun, 10 Jun 2007 19:17:43 GMT

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=8092

http://www.ameriquestmultistatesettlement.com

Re: Mortgage Middle Score??

NikJ4 — Fri, 25 Jan 2008 04:00:04 GMT

not sure if this has actually been answered for you but they will use the 635 ( i think that is what it was) of your Husband's score to base your loan. They take the lower of the two applicants to determine what loan product you will qualify for. Since you will have to go full doc(bankstatements, paystubs etc) this should be no problem getting qualified. Please make sure that you are not getting raped over a rate and look on your Good Faith Estimate what the YSP is being paid to your broker(if you are using one). This is Date Rape 101. I worked in that industry for 10 + yrs.