Understanding Credit Scores.

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Mortgage and Lending with NMLS# 729950 NMLS # 729950

Many Realtors and Borrowers have been asking me what are lenders looking for in Credit Scores. Times have certainly changes and over the years I have given out many charts with FICO Scores and what they mean. So I now have done a Revised Chart based on todays lending.Nothing is written in stone and I know there will be exceptions to this chart but below are typical requirements and how they affect your credit score. Other factors such as length of employment, savings history and high credit payment history will have some influence on loan approvals, but The CREDIT SCORE (FICO) will have the most impact. 

GRADE       SCORE        AVG.Debt Ratios       Max. Loan Amount  Approved     Percent Of The Country With This Score

A+             800+                28 %                     95-100 %                                       13 %

A+             750-799        36-38 %                    95-100 %                                       27 %

A-              700-749        36-40 %                    95-100 %                                       18 %

B               650-699          45 %                       80-95 %                                         15 %

C               600-649          45 %                       80-95 %                                         12 % 

D               550-599          50-55 %                                                                         8 %   

E               500-549           60%                                                                              5 %

F               Up to 499         65 %                                                                             2 %

Grade Score,Debt Ratios and Max Loan Amountsare based on: Personal observations, lending policies from various investors and willingness to grant approvals. This is also based on Conventional Loan Approvals. FHA, VA and other Bond Programs are exceptions to this chart. For example FHA, VA are not FICO score driven and FHA will lend up to 97 % and VA 100%. Use this for informational purposes only! Remember to always check with your mortgage professional for any new products and updates. I HOPE THIS HELPS!

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Joe D'Agostino

Mortgage Officer 46 years!
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