Can my ex get a mortgage after bankruptcy?

Q: My two sons and ex-wife are in the market for a mortgage. My sons’ FICO scores are in the high 700’s but my ex-wife’s score is in the low 700’s (3-4 years ago, she declared bankruptcy). Can your software handle three FICO scores on a single inquiry ?

A: Great question!

First, let me explain how lenders view credit scores. You’ll typically have one “primary borrower” on an application. That person is usually the one who is makes the most income. It’s the middle score of that primary borrower that usually determines the rate and program for the loan. Any “co-borrower” will also be on the application, but their credit scores are often considered a “compensating factor” which means they can help, but don’t carry the same weight. A very small number of lenders will average credit scores of both borrowers.

Our system is set up like that of the lenders whose programs we search, allowing for two borrowers (one primary borrower and one co-borrower).

I don’t know what your son and ex-wife’s incomes are, but if your sons make enough money to support the loan, your wife doesn’t even have to be on the loan. She can still be on the title to the property without being included on the loan. If her income is essential to qualifying, however, then the good news is that her bankruptcy may be old enough that it doesn’t have a major impact on the loan. (Though as you point out, it would likely be best if one of your sons is the primary borrower because of their high credit scores.)

I would recommend they run their rate search using the information of the two borrowers with the highest documented income. If those two are your sons, then great. If your ex-wife is the primary wage earner, she should be listed first. After they compare mortgage rates using our mortgage search engine, a single loan officer will contact them to discuss their loan needs, and can help them decide if there is a better way to handle the application.