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Authorized user tradeline before a mortgage?

user967354
Established Member

Authorized user tradeline before a mortgage?

We are looking at getting a construction loan in just my husband's name.  He only has 2 store credit cards as well as some paid off mortgages/etc.  Hoping to boost his score from 700 to 740.  I read that if he gets added as an authorized user to a regular credit card, that the mortgage underwriter may have him taken off it anyway.  I've also read that they wouldn't question it if only 1/3 of his credit cards he is the authorized user instead of primary account owner.  Also, how would they know if it was my card he was on or someone else's if I'm not on the mortgage?  I realize that this may not get him 40 points, but hoping if I get him added to a longer length card, that it will have some impact. There is 1 late payment on a stupid US Bank line of credit that will age 6 months next month, so hoping that helps too!  (Was selling our house then, and US Bank apparently doesn't care if we keep our accounts with them, so they won't remove)

Message 1 of 5
4 REPLIES 4
ShanetheMortgageMan
Super Contributor

Re: Authorized user tradeline before a mortgage?

If he already has established credit then it's unlikely that he'd ask to be removed as an authorized user from any credit cards.  If confirmation is needed that they are your cards then a letter from the creditor naming the primary account holder would work.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 5
user967354
Established Member

Re: Authorized user tradeline before a mortgage?

Thank you Shanethemortgageman. 

The card would not be mine...

The 2 store cards are 10+ years old..so some history there.

Just trying to do what we can to compensate for 1) the 6 month old late payment...ugh, 2) no non-store credit card 3) no more student loan, mortgage, car loan.  1st world problems!

Message 3 of 5
ShanetheMortgageMan
Super Contributor

Re: Authorized user tradeline before a mortgage?

You're welcome.  If your husband had only had a few of his own trade lines and around an equal number of authorized user trade lines, and your husband's own trade lines were marred with late payments so it'd be apparent that the authorized user trade lines are doing the majority of the "heavy lifting" with the credit score, then an underwriter might be hesitant to accept his current credit scores.  In the situation you've described it shouldn't be a requirement for the authorized user card's primary account holder to be a family member or another person on the loan.  I'd make sure your husband's credit card balances are low and would go ahead with getting him added as an authorized user.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 5
user967354
Established Member

Re: Authorized user tradeline before a mortgage?

Thank you so much! I didn't want to go through all that work and just have to remove it.  

 

Message 5 of 5
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