Watch our YouTube Video on Blended Credit here: https://youtu.be/1mZjkOBIfWs
As of September 18, 2021, Fannie Mae’s new credit score rule allows lenders to average the co-borrower’s FICO scores together to determine eligibility for a conventional loan.
What does this mean for you? Using the same example of the two co-borrowers with credit scores of 690 and 580, if we were to evaluate their average credit score it would be 635. Where they may have struggled before, this new average score makes the co-borrowers eligible to buy or refinance a home.
Combined income may allow two co-borrowers to qualify for a larger loan amount since together they can afford a higher monthly mortgage payment. With Fannie Mae’s new rule, co-borrowers have a better chance of final approval for a home loan based on their average combined credit score and both their incomes taken into consideration.
Fannie Mae’s new credit rule can also help couples save money by refinancing their mortgage loan for a chance to receive lower interest rates on their current loan. Previous borrowers who were forced to apply as individual applicants can now refinance as dual-income households to lower their monthly mortgage payments and decrease interest fees.
Choice Mortgage Group
Choice Mortgage Group is dedicated to helping people improve their financial situations and create lasting memories through home ownership – one loan at a time. Our team of mortgage experts build customized solutions for each of our clients, based on their specific situations, goals, and objectives.
Specializing in residential mortgage lending for over 25 years, our programs include conventional and government lending, purchases, and refinances. We also offer portfolio lending for self-employed borrowers and borrowers with complicated tax situations.
South Florida is where Choice Mortgage Group started, and we like to call it home. We are devoted Florida Atlantic University Owls fans and are proud to be the official mortgage lender partner of FAU Athletics. We also support numerous other local organizations.
For more information about Choice Mortgage Group, visit www.choicemortgage.com.
2424 N Federal Hwy, Suite 100
Boca Raton, FL 33431
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