Lenders are beginning to push the real strict risk thresholds here.
This risk comes with a Higher Interest Rate, Loan-to-value is ususally at 80% to 85% of the appraisal, LTV might be as low as 75. And things are getting tougher by the minute.
"B" CREDIT Must Haves
• Fair credit last 12 months.
• Job stability . 18 months in same profession.
• Debt ratio (house payment, installment & revolving) not over 55% of gross income.
• Consumer credit - up to five 30-day late payments, one 60 and one 90.
• Mortgage credit - three 30-day late payments, no 60 or 90 in last 12 months.
• Liens, judgments or collections must be paid if they affect the title to the property.
• Bankruptcy . at least four years since discharge and good credit since the discharge.
These are just a few things to consider although I encourage our lending community to chime in and include their thoughts or corrections !
Next : "C" Credit