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Call us at
706.571.0424 or 1.866.571.FMMC (3662) for a FREE Loan Analysis! |
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CREDIT SCORE
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| Mortgage companies often grade your loan based on certain credit-related items such as
payment history, amount of debt payments, bankruptcies, equity position, and your
credit score.
Below is a guide to help you estimate your credit grade. This is only a guide as many companies have exceptions that may
result in more strict or more lenient guidelines.
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A General Guide to B-C-D Credit Grades |
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Quality Level |
Credit Score |
Debt Ratio |
Max LTV Ratio |
History for Credit Type |
Delinquencies: |
Typical Additional Requirements |
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# of times |
# of days |
Within last |
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| A+ to A- |
670+ 660 |
28/
38 |
To 95% |
Mortgage
Installment/
Revolving |
0
0 - 1
0 - 1 |
-
30
60 |
24 mo
12 to 24 months |
Good/excellent credit during
last 2 to 5 years. No bankruptcy within the last 2
to 10 years. |
| B+ to B- |
620 |
50 |
75 - 85 |
Mortgage
Installment/
Revolving |
2 - 3
2 - 4
0 - 2 |
30
30
30 |
12 mo
12 mo
12 mo |
No 60-day mortgage lates. 24 -
48 mos since bankrupt discharge. Higher number of
rolling lates may be allowed. |
| C+ to C- |
580 |
55 |
75 |
Mortgage
Installment/
Revolving |
3 - 4
0 - 2
4 - 6
2 - 4 |
30
60
30
60 |
12 mo
12 mo
12 mo
12 mo |
12 - 24 mos since bankrupt
discharge. High "rolling" lates allowable. |
| D+ to D- |
550 |
60 |
65 - 70 |
Mortgage
Installment/
Revolving |
2 - 6
1 - 2 |
60
60 |
12 mo
12 mo |
Bankruptcy discharge within last 12 months.
Judgements to be paid w/ loan proceeds. Not in
foreclosure. |
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Poor payment
record with limited 90 day, isolated 120 day |
| E |
520- |
65 |
50-65 |
Mortgage
Installment/
Revolving |
Poor payment
record with a pattern of 30, 60, and 90+ lates |
Possible current bankruptcy,
foreclosure Stable current employment |
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The figures shown here are estimates. When trying to figure your
credit grade, keep in mind the following principles:
- Other Things Being Equal
When your have bad credit, all of the other aspects of the
loan need to be in order. Equity, stability, income,
documentation and assets play a larger role in the approval
decision.
- Worst Case Scenario
When determining your grade, various combinations are allowed,
but the worst case will push your grade to a lower credit
guide. Late mortgage payments and
bankruptcies are the most important.
- Going Once, Going Twice
Credit patterns are very important. A high number of recent
inquiries and more than a few outstanding loans may signal a
problem. A "willingness to pay" is important, thus late
payments in the same time period is better than random late
payments as they signal an effort to pay even after falling
behind.
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