topic Re: How does being an Authorized User affect a mortgage in Mortgage Loans

How does being an Authorized User affect a mortgage

Kkhalil85 — Thu, 20 Aug 2015 14:55:02 GMT

Hi all, I been searching this forum for few days now trying to understand how will AU account affect my ability to get a mortgage and how does it affect mortgage scores. I am sorry if it's posted somewhere and i missed it.

I am an authorized user on 3 of my dad CC, two with $0 balance and one with $8K balance/ $19,650 limit. From my search i read that this balance can be used in my Debt to Income ratio?? and some people said that the will not take AU into account?? some even suggested the fico score that is used for mortgages doesn't include any AU into consideration?? some people even suggested that AU should be removed from credit reports because loan officers sees AU as an inaccurate representation of ones ability to manage their credit.

Thanks in advance for any info or personal experience that you share.

Re: How does being an Authorized User affect a mortgage

Revelate — Thu, 20 Aug 2015 16:51:28 GMT

@Kkhalil85 wrote:
Hi all, I been searching this forum for few days now trying to understand how will AU account affect my ability to get a mortgage and how does it affect mortgage scores. I am sorry if it's posted somewhere and i missed it.

I am an authorized user on 3 of my dad CC, two with $0 balance and one with $8K balance/ $19,650 limit. From my search i read that this balance can be used in my Debt to Income ratio?? and some people said that the will not take AU into account?? some even suggested the fico score that is used for mortgages doesn't include any AU into consideration?? some people even suggested that AU should be removed from credit reports because loan officers sees AU as an inaccurate representation of ones ability to manage their credit.

Thanks in advance for any info or personal experience that you share.

I can't answer on the DTI question, but I can on FICO: that AU will be taken into account for a mortgage trimerge pull and the resulting scores.

If it were me I'd leave the two $0 accounts on there if they're helping your account age and don't have any derogatories, and I'd remove the 8K balance one.

Re: How does being an Authorized User affect a mortgage

DallasLoanGuy — Thu, 20 Aug 2015 16:54:23 GMT

i guess every lender could deal with it a little different

we add to dti unless the program allows us to not use it by having acct owner prove they make all payments.

it is considered in underwriting

it is considered by fico score

Re: How does being an Authorized User affect a mortgage

Kkhalil85 — Thu, 20 Aug 2015 18:55:40 GMT

Thank you guys, so its does not have a negative impact on the fico mortgage score or the chances of obtaining a mortgage; beside the fact that it have a balance. Any idea how long will it take to be removed from the CR, and can I add it back in the future?

Re: How does being an Authorized User affect a mortgage

CH-7-Mission-Accomplished — Thu, 20 Aug 2015 19:20:26 GMT

@Kkhalil85 wrote:
Thank you guys, so its does not have a negative impact on the fico mortgage score or the chances of obtaining a mortgage; beside the fact that it have a balance. Any idea how long will it take to be removed from the CR, and can I add it back in the future?

A lot of times the lenders leave it on your report and under "owner" they just list "terminated," meaning the authorized user is terminated. It's not a bad comment.

This way the balance gets zero'd out and you get to keep the account age for AAofA.

I have four AU accounts with my ex (I was the AU). All four stayed on my report and I get the age. They were Cap 1, Chase and AMEX.

Re: How does being an Authorized User affect a mortgage

Kkhalil85 — Thu, 20 Aug 2015 23:53:47 GMT

So when i am removed from the discover account as an AU, it will show as with a ZERO balance Regardless of the actual balance on the card at the time of the request.

Re: How does being an Authorized User affect a mortgage

Revelate — Fri, 21 Aug 2015 04:10:34 GMT

@Kkhalil85 wrote:
So when i am removed from the discover account as an AU, it will show as with a ZERO balance Regardless of the actual balance on the card at the time of the request.

Not sure that CH7's experience on that applies to all lenders necessarily but he has better data on AU's than I do when we're talking anecdotal experience.

Frankly you win either way, you get the high balance off your reports so that it doesn't complicate your mortgage; if it stays on there with tradeline history but positive balance, you get bonus points. As for re-adding it, can easily be done in the future.

I'd go take care of it right now personally.

Re: How does being an Authorized User affect a mortgage

Anonymous — Sat, 22 Aug 2015 14:14:01 GMT

I was in the same boat as you. Except it was my ex-husband who had me listed as an authorized user on 6 of his credit cards. They were all showing open balances and using over 45% of their credit limit. It was going to affect me qualifying for my dream home which was 135K on a 43K a year salary. However, I needed to show good credit in order to qualify for the mortgage. If I was removed then my score would drop and I would be unable to qualify. Once my loan closed I also noticed that my score shot up 20 points once the account started showing up on my credit bureaus. Hope this help! Good Luck!!!

Re: How does being an Authorized User affect a mortgage

Anonymous — Sun, 20 Aug 2017 15:10:53 GMT

So I know this is an old thread and I am new here, but Sidneyhertz I was wondering if you actually DID get removed as an AU and if it helped as you state you "got the loan". So my question is, did you or did you not remove yourself as an AU and did it help the FICO mortgage score?