FICO Score Qualifications for a Subprime Mortgage Loan
Until early 2007, lenders made subprime loans to borrowers who had FICO scores of less than 620. But those ratios are rising in the heat of the subprime market shake-out. Borrowers who once qualified with a FICO of 620 have watched the FICO requirements move to 640 and up. Those applying for 100% financing could once qualify with a FICO of 580, but that number has changed to 620, coupled with almost double-digit interest rate pricing. Today, except for VA, most lenders will not lend at all on 100% financing.
• Major institutional lenders like to see FICO scores above 700, and those borrowers receive the lowest interest rates and terms.
• Borrowers whose FICOs fall between 600 and 700 receive less favorable terms.
• Borrowers with FICOs below 600 are finding it difficult to obtain financing at any interest rate.
Tip: FHA loans do not require a FICO score and may be an option for borrowers hoping to refinance.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Until early 2007, lenders made subprime loans to borrowers who had FICO scores of less than 620. But those ratios are rising in the heat of the subprime market shake-out. Borrowers who once qualified with a FICO of 620 have watched the FICO requirements move to 640 and up. Those applying for 100% financing could once qualify with a FICO of 580, but that number has changed to 620, coupled with almost double-digit interest rate pricing. Today, except for VA, most lenders will not lend at all on 100% financing.
• Major institutional lenders like to see FICO scores above 700, and those borrowers receive the lowest interest rates and terms.
• Borrowers whose FICOs fall between 600 and 700 receive less favorable terms.
• Borrowers with FICOs below 600 are finding it difficult to obtain financing at any interest rate.
Tip: FHA loans do not require a FICO score and may be an option for borrowers hoping to refinance.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125