In a married couple applying for a conventional mortgage, which credit score will the lender use for qualification?

When evaluating a married couple applying for a conventional mortgage, lenders typically consider the lower of the two credit scores for qualification purposes. This practice is rooted in risk assessment; lenders aim to mitigate the potential risks associated with lending. Using the lower score provides a cautious approach, as it reflects the financial reliability of the applicant who may present greater risk to the lender.

Lenders are concerned about the risk of default, so they look to the credit score that indicates the least favorable borrowing capacity. If both applicants have credit scores, taking the lower score ensures that the lender is setting a conservative threshold for underwriting the loan. This approach helps protect the lender's interests and ensures that both borrowers can handle the responsibility of the mortgage.

The other options presented do not align with common practices in mortgage lending. For instance, using the higher score or an average might misrepresent the couple’s risk profile. Additionally, while other factors, such as income and debt-to-income ratio, are vital in the overall assessment process, they do not replace the significance of credit scores in determining loan qualification.