[Homestead] It is happening

Lisa Perry lkvp at floydva.net
Wed Feb 9 14:45:33 EST 2005


Rob wrote:

> Sub prime, I never heard that term before.
> (Say Lisa, how do they figure the credit score when the husband and 
> wife have different scores?)
>
The main Borrower on the application is the one with the highest credit 
score, not the highest income.  Sometimes you luck out and the Borrower 
has both.  The Co-borrower's credit score is weighted at 50%.  So if you 
are the Borrower and have fabulous credit and the Co-Borrower has less 
than perfect credit, you won't be hurt too much by the Co-Borrower.  
Some times it is necessary to drop the Co-Borrower if they have awful 
credit and not much income or none at all.  However, if the Co-Borrower 
has decent credit or less than perfect credit (or even poor credit) but 
they are employed and your debts are mutually shared (mortgage, car 
loans, credit cards already counting against Borrower and no additional 
debt--or not much--attitributed solely to the Co-Borrower), the 
Co-Borrower remains on the app because seven times out of ten the 
Borrower needs the income of the Co-Borrower to fully qualify.

Does that make sense or is it as clear as mud?  If the Co-Borrower has 
less than perfect credit but the Borrower scores significantly higher, 
usually it can only help the Co-Borrowers's score to be put on the 
loan.  One year of paying the mortgage on time will do wonders for the 
Co-Borrower's credit rating.

Lisa




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