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If you use a co-borrower on the HARP refi, does the co-borrower's credit score matter and do they have to reside in the residence?

by myron_washington281 from Chicago, Illinois. Oct 24th 2014 Reply

William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,369 contributions

Your question has 2 parts.. First, regarding the credit, the answer is absolutely.. loan approval and pricing is based on the lowest mid score of ALL borrowers.. if one has an 850 score and the other has a 650 score, your loan pricing and eligibility will ride on the lower score.. Second, as far as occupancy, HARP guidelines do allow you to add a non-occupying co borrower. Understand that HARP nor Fannie Mae actually lend money.. they only allow mortgage companies to block and securitize performing mortgages on the open market.. Each lender can have their own set of rules above the conforming guidelines.. it's these "Overlays" that result in some lenders disallowing co borrowers when the guidelines say it's allowed. For this reason, I suggest you contact a local mortgage broker.. Brokers deal with multiple lenders ( i have 21) with each one offering a different set of guidelines and overlays.. more options results in a greater likelihood of your loan being approved.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

Oct 24th 2014
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