credit score criteria for qualifying - Posted by So Cal Don

Posted by wayne on September 07, 2003 at 23:11:58:

I sell real estate and I know Fannie mae (FHA) has just passed new laws so you might want to check into it. I think if you buy a property FHA you can not sell it to a buyer with a FHA loan for 6 months. Look into it. Also Most FHA loan reguire a 600-620 medium fico score unless you are putting 10 -20% down. Don’t qoute me but it is worth looking into.

credit score criteria for qualifying - Posted by So Cal Don

Posted by So Cal Don on September 07, 2003 at 01:55:26:

I’m a newcomer to this wonderful board and am busy rebuilding my credit. My business went south when CA state froze its funding and canceled 2 pending contracts after 9/11. My fault because I put all my eggs in one basket. I had to run my business and personal on credit cards. It reached 45k but is now about 14k.

My wife has good credit and we want to use hers to buy Fannie Mae properties to flip. Can we use hers alone or will they want to see mine too? We don’t know her score (we’re getting it) but it has 13 good marks and 0 bad. How bad are numerous inquiries to the score? Does salary affect the score? She is a full-time student and part-time worker.

My credit used to be well over 700, and its now about 570.
Since I own my own corp, will it help my qualifying to just start paying myself a lot, or will they go by last 2 years where I paid myself little? Are we better off putting her on the payroll?

I am a beginning investor but am very motivated. I would apprecitate any input.

Re: credit score criteria for qualifying - Posted by Sunstar Mortgage

Posted by Sunstar Mortgage on September 10, 2003 at 13:33:17:

First for your wife v/c your score, the lender will consider the score of the person who are on the application. So, if your wife can qualify without your income,then only her score matters. She can try no doc or stated if her income is not enough and you do not want yourself on the application. 570 may not automatically deny you loan if its approved by DO or LP.
Paying yourself more now may not help as lenders look at year to date income and atleast one year w-2. For your score they may need two year w-2s. Score above 700 may only ned year to date income documentation.

If your wife score is highe than 730, then she can be on your pay roll and get a good loan without two year history by stating a income. So, your best bet will be to work with some lenders and she what option will best fit your needs.

Shambhu Nath