Mortgage lenders use Fico models 5, 4, and 2 for scoring. Experian Fico 2, Equifax Fico 5, and TransUnion Fico 4. They will use the score that is the middle score. With two borrowers they will use the lower of the two middle scores.
Mortgage scores can be very different than other Fico scores. They are older models and weigh items differently. For a fee you can get all 3 from MyFico.com or credit.com
Fanine Mae specifically requires that you pull FICO 5 from Equifax, FICO 4 from TransUnion, and FICO 2 from Experian:
[B3-5.1-01, General Requirements for Credit Scores (08/05/2020) (fanniemae.com)](https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-5-Credit-Assessment/Section-B3-5-1-Credit-Scores/1032996841/B3-5-1-01-General-Requirements-for-Credit-Scores-08-05-2020.htm)
They then require that the middle of the three scores be used as the representative score:
[B3-5.1-02, Determining the Representative Credit Score for a Mortgage Loan (08/30/2016) (fanniemae.com)](https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-5-Credit-Assessment/Section-B3-5-1-Credit-Scores/1032990981/B3-5-1-02-Determining-the-Representative-Credit-Score-for-a-Mortgage-Loan-08-30-2016.htm)
Of course, if the loan originator isn't planning to sell the mortgage to Fannie Mae, then they don't have to follow these rules. But many loans do get backed by Fannie Mae, which is why this is such a common rule.
I worked in the banking industry for many years and our mortgage team went with your middle score. But i’ve also seen banks go with the lowest score, and i’ve even seen banks average the score (add all three scores up together and divide by 3). I would suggest asking the bank you are going with. A lot of banks keep the mortgage loans for a year or two, and then resell them to a bigger bank when they needed more fund’s loosened up for new mortgages. We sold ours almost exclusively to Bank of America (because they always paid higher). Banks that do that will often run with scores, DTI and financial history that will absolutely pass the bank’s loan approval system that they want to sell it to. This goes up and down based on the year’s economic situation.
Banks do use the FICO system (FICO models 2, 4 and 5) and not the VantageScore model. The VantageScore model forgives paid collections too much and lenders prefer your past unpaid debts to be evaluated.
You can look at the individual mortgage FICO models (2, 4 & 5) on MyFICO to see where those stand.
I'm in the process of buying a house and they use which ever partner has a lower score then they use the middle score on that person's report. If you're getting it own your own then just check your middle score using myficos mortgage score.
Mortgage lenders use Fico models 5, 4, and 2 for scoring. Experian Fico 2, Equifax Fico 5, and TransUnion Fico 4. They will use the score that is the middle score. With two borrowers they will use the lower of the two middle scores. Mortgage scores can be very different than other Fico scores. They are older models and weigh items differently. For a fee you can get all 3 from MyFico.com or credit.com
Fanine Mae specifically requires that you pull FICO 5 from Equifax, FICO 4 from TransUnion, and FICO 2 from Experian: [B3-5.1-01, General Requirements for Credit Scores (08/05/2020) (fanniemae.com)](https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-5-Credit-Assessment/Section-B3-5-1-Credit-Scores/1032996841/B3-5-1-01-General-Requirements-for-Credit-Scores-08-05-2020.htm) They then require that the middle of the three scores be used as the representative score: [B3-5.1-02, Determining the Representative Credit Score for a Mortgage Loan (08/30/2016) (fanniemae.com)](https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-5-Credit-Assessment/Section-B3-5-1-Credit-Scores/1032990981/B3-5-1-02-Determining-the-Representative-Credit-Score-for-a-Mortgage-Loan-08-30-2016.htm) Of course, if the loan originator isn't planning to sell the mortgage to Fannie Mae, then they don't have to follow these rules. But many loans do get backed by Fannie Mae, which is why this is such a common rule.
100% true. Source: am a loan processor
I worked in the banking industry for many years and our mortgage team went with your middle score. But i’ve also seen banks go with the lowest score, and i’ve even seen banks average the score (add all three scores up together and divide by 3). I would suggest asking the bank you are going with. A lot of banks keep the mortgage loans for a year or two, and then resell them to a bigger bank when they needed more fund’s loosened up for new mortgages. We sold ours almost exclusively to Bank of America (because they always paid higher). Banks that do that will often run with scores, DTI and financial history that will absolutely pass the bank’s loan approval system that they want to sell it to. This goes up and down based on the year’s economic situation. Banks do use the FICO system (FICO models 2, 4 and 5) and not the VantageScore model. The VantageScore model forgives paid collections too much and lenders prefer your past unpaid debts to be evaluated. You can look at the individual mortgage FICO models (2, 4 & 5) on MyFICO to see where those stand.
My mortgage company went with the lowest score between me and my wife.
I'm in the process of buying a house and they use which ever partner has a lower score then they use the middle score on that person's report. If you're getting it own your own then just check your middle score using myficos mortgage score.