Mortgage Loans

What are the credit score requirements?

GCEFCU can work with a minimum credit score of 640. However, we see a higher benefit to our members when the credit scores are higher.  The higher the credit score, the better for you, our member.

My Payroll is deposited directly into my GCEFCU account, do you still need my pay stubs?

Yes. When we calculate income, we use the gross income amount, which is the higher income amount shown on your pay stub (gross income = before any deductions). Your direct deposit only shows the net amount (net income = after deductions). Therefore, your net income gives you less income to qualify.

Do student loans count against me when applying for a mortgage loan?

Yes, here are the options available on how student loan payments are calculated:

• If the credit report shows a monthly payment due for each student loan, the lender may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the lender may use the monthly payment that is on the student loan documentation (the most recent student loan statement) to qualify the borrower.
• For deferred loans or loans in forbearance, the lender may calculate
• If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below.
• If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment.
• A payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or
• A fully amortizing payment using the documented loan repayment terms.

What if my credit score is below the minimum score required, but my spouse/co-borrower has great credit?

All borrowers need to meet the credit history and score requirements.  If one of the applicants does not meet the credit history and score criteria, he/she may not qualify to be added to a loan application.

Can I get a personal loan or charge my credit card to cover the down payment and closing cost?

Funds for down payment and closing cost may not be borrowed, unless it is with a secured/collateral loan (using a vehicle title, home equity or retirement savings). However, borrowers need take into consideration that any new debt obtained may have a negative impact on their application.  Funds for down payment and closing cost may be gifted from a qualified donor.