Mortgage Lenders- questions for you

[Anonymous]

Which FICO score is used for approval? What if there are two people applying together which score is then used?

Not looking to purchase until mid to late 2021 so have time to increase scores from the current 670-680 (me) 750-775 (him) and also pay down debt (auto & personal loan) that we currently have. 

Will probably end up going conventional since my partner will be selling his home in Florida and using some of the profits for down payment along with our savings (30-50% down payment is the goal and attainable) But I wonder about FHA- is PMI for the entire loan term or just until there is a certain amount of equity in the home?

Thanks in advance!

[AllZero]

Scores lenders use for mortgage are Experian 2, Transunion 4, Equifax 5.

They will use the lowest MMS Middle Mortgage Score.

[AllZero]

Free mortgage scores

EX2 + 3 Bureau report for $1 at Experian or CreditCheckTotal (part of Experian). Cancel in 7 days or less to avoid the reoccurring charge.

TU4 WyHy quarterly score. Not sure on membership requirement. Maybe hard pull TU?

EQ5 Get a savings account with DCU. Soft pull EQ to be a member. Free monthly score.

You can also obtain your 3 bureau mortgage scores at FICO Advanced . Cancel plan after you grab your scores to avoid re-occurring monthly charge.

[Anonymous]

As has been previously mentioned, the FICO scores that are used are Experian 2, Transunion 4, Equifax 5. The middles score of the three is the score that is used. If you have two borrowers on the loan, the lower middle score of the two is used as the qualifying score.

As far as FHA goes, the MIP (PMI for FHA loans) is for the lifetime of the loan. That said, you are free to refinance at any time. I believe that 20% equity is hit at 11 years, so you may be able to refinance with a conventional loan at that point without MIP. Someone should validate this statement as this is my understanding but most of what I have learned has been over the last two months so I am not expert by any means.

[VALoanMaster]

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@Anonymous wrote:

As has been previously mentioned, the FICO scores that are used are Experian 2, Transunion 4, Equifax 5. The middles score of the three is the score that is used. If you have two borrowers on the loan, the lower middle score of the two is used as the qualifying score.

As far as FHA goes, the MIP (PMI for FHA loans) is for the lifetime of the loan. That said, you are free to refinance at any time. I believe that 20% equity is hit at 11 years, so you may be able to refinance with a conventional loan at that point without MIP. Someone should validate this statement as this is my understanding but most of what I have learned has been over the last two months so I am not expert by any means.

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The FHA MIP is for the life of the loan if you put less than 10% down. At 10%+ the MIP is for 11 years. 

With 30 to 50% down, it really wouldn't make sense to go FHA.