Property Type and Fico Score Can Significantly Affect Rate

We recently had a borrower request a verbal rate estimate after telling us her credit was perfect and that she was buying a townhouse/PUD. We estimated her “no points” rate at 3.875%, assuming her credit score was above 740.

Her credit score was actually 718, and she was buying a condominium. The combination of these factors (score below 720, and condo) increased her rate 3/8%, to 4.25%.

Many borrowers are completely unaware of how much property types and credit scores affect interest rates, especially at higher LTVs.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646