Multiple Borrowers Multiple Scores

Even when you and your spouse (co-borrower) show more than adequate income to buy and finance a property, both borrowers often need credit scores or explanations that surpass lender standards. Without meeting this requirement, the lower-score borrower might have to withdraw as a co-borrower. The lender will then limit the loan amount to the qualifying capacity of the higher-score borrower.

You can work around this problem. Buy a two- or four-unit property, or a home with an accessory apartment, and use lease income from the rental units to lift the higher-credit scorer's qualifying income. Also, you could bring in another strong credit person (parent, sibling, friend) to serve as cosigner or co-borrower; however, the amount and repayment performance for that mortgage will impact that person's future credit record and borrowing power.

If you are asked to help someone qualify for a loan, be wary. Likewise, if you ask someone to sign for you, pay the loan diligently. Otherwise, you risk the other person's credit score as well as your own.

Emergency Quick Cash

Emergency Quick Cash

At least once in every person’s life comes a time when the need is great and the resources are few. It can be hard enough to make ends meet on a decent wage, but, when the times get tough and the money just is not there to meet the need, a person can easily despair.

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