Here is some credit information everyone in real estate should know.
Mortgage companies pull credit from three bureaus and correlate to the middle of the three scores. For multiple borrowers, lenders always correlate to the borrower with the lowest middle score.
Mortgage credit scores are usually lower than consumer credit scores (found online) b/c mortgage scoring models are more stringent.
Most FHA and Conforming lenders require a minimum score of 620. Some FHA lenders (like JVM) will allow scores as low as 580 with “manual underwrites.”
The minimum credit score for most jumbo lenders is 680. JVM’s primary equity line lender requires a 700.
FHA requires two years of seasoning for a BK, and 3 years for short sales and foreclosures.
We have several sources now for alternative financing that require no seasoning, but they do require large down payments, and the rates are higher.
All this info is covered in our monthly Mortgage 101 Seminars. Our next one is on Tuesday, Oct. 25th at 12:30. Our seminars are free, fast, fun and delicious (lunch will be served).
We highly recommend our seminars for anyone newer to the industry. The seminars help Realtors to understand the loan process, to look like true experts to their clients, and to not get fooled by lenders.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646