Finally…Mortgage Credit Revealed!
It seems that mortgage credit score qualification standards are getting harder to understand these days. In saying this, I would like to go through the list below with you, which will help you understand the overall credit criteria you need.
(Years prior a 600 credit score and a current job was all that was required.)
Mortgages at 80% to 95% Loan to Value with 20% to 5% down (Insured)
Above 700 Credit Score
- This is the credit score that most lenders want to see, which also gets you the best mortgage rate. They want to see a healthy bureau. Healthy, meaning a long bureau history and overall good use of the credit you were given within that time.
Above 680 Credit Score
- This would be the new minimum beacon to not have any exceptions made and the file looked at for approval right away. Strong “thick” credit history would be required.
Mortgages at 80% Loan to Value and 20% down (Non -Insured)
Above 650 Credit Score
- This credit score makes it harder to approve your mortgage request and we may need 20% down to avoid the insurer; this is due to the insurer’s income requirements, down payment requirements, and credit requirements being harder to achieve. The deal could be declined due to improper submission notes and history details. Please note insurers will still look at this beacon score.
Above 610 Credit Score
- This is hard. 20% down payment needed most likely. You must provide accurate reasons to the lender why the beacon is so low if credit seems satisfactory. A cosigner most likely will be requested.
Above 600 Credit Score
- Treated same as above, and will be declined or a cosigner requested.
Below 600 Credit Score
- This is easy if we are okay with B Lending and have the 20% down payment. Rates are highly competitive. You will also find that a higher purchase price can be approved than traditional lending. A list of situations that fit within this Credit Score lending are:
- Prior bankruptcy not yet 2 years discharged
- Current proposal
- Non paid bad debts ( credit cards, loans, etc.)
- No credit overall
- Income is hard to prove
No Beacon or Zero Credit Score
- We can always look at this and try B Lending. There are many options through our 143 plus lenders which allow for no credit score. We just have to get the full story.
I hope this helps you realize what type of credit score you need for a mortgage. Don’t know what your credit score is? Talk to a Mortgage Suite professional today! Reviewing your credit score takes minutes, and can save you thousands!! It’s the beginning steps on your path to a better mortgage!
