Gift Fund Question For Home Loan Down Payment

[Danny King]

Is it also true that lenders will take the middle of the 3 credit scores from the husband and spouse and use the lowest one?

[FalconheadWest]

Originally Posted by Danny King

Is it also true that lenders will take the middle of the 3 credit scores from the husband and spouse and use the lowest one?

Not necessarily. The main score they look at is the mid score of the higher income earner. The co-borrower, with the lesser income, is looked at second. Many people get upset with that because they're like, "But my score is higher, why does it make a difference that he/she makes more?" Because the person with the higher income is the one putting more into the debt to income ratio, so they get more weight. What if the higher income earner loses his/her job? Ouch!

[BacktoCO]

Originally Posted by Danny King

I have considered a FHA loan but if I were to go that route I would have to be getting on it a little sooner than I would like. When the new rules kick in early June you will have to pay mortgage insurance for the life of the loan if you put less then 10% down. Currently you only have to pay it until you pay off 22% of the home. Paying mortgage insurance for the life of the loan seems like highway robbery to me.

Totally agree. Wow, I did not know that. Not good!!

[Danny King]

Originally Posted by BacktoCO

Totally agree. Wow, I did not know that. Not good!!

Yes somewhere around the range of 60k in MIP over 30 years for a 150k house. Good luck to the big wig suit that called that shot. 150k x 1.35 = 2025 divided by 12 = 168.75 a month x 12 = 2025 x 30 years = $60750

Good luck with that FHA.......