How To Get A Jumbo Mortgage Loan With A Low FICO Credit Score
A jumbo mortgage loan with a low FICO credit score can be done! One of my sources of business lately has been picking up loans from real estate agents and other lenders that could not fit potential borrowers into their credit score box.
Generally speaking, the credit score box for non-conforming (jumbo) loans is very rigid. One of the first actions a loan officer takes is to run a credit report. If the jumbo loan applicant does not have the credit score required, the loan officer can:
- suggest some actions for the applicant to take to improve the score, or
- tell the applicant he can't help them and the applicant goes somewhere else.
Number one takes time. If the buyer/applicant has found a house they want to make an offer on now, they may not be able to take the steps necessary with their creditors to improve their FICO score on time.
Number two may lead the homebuyer to conclude that there is no hope to buy in the near future. They take what they hear from the lenders they have spoken to as "gospel", meaning that if they have heard from two or three lenders that their credit score is too low, no lender can help them.
Luckily, there are jumbo loan programs that are more concerned with payment history than FICO score! A low credit score due to recent late payments, especially on a mortgage, will be difficult to get approved. However, if the score is low because of other factors, don't give up!
What is a low credit score, you may ask? For the purposes of this article, a low FICO score is one point less than what you need to get your jumbo loan application approved!
The moral of this story - shop around! Just because a couple or three loan officers tell you your credit score is too low does not mean that you can't get a jumbo mortage loan!
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