Tag: Credit Score

Can You Use One Credit Score?

Question: Our borrower is only reporting one credit score.  Can we use this score, or do they need to have 3 credit scores reporting? Answer: As long as DU or LPA accept the one score, that would be acceptable. Fannie and Freddie do not require you to have three scores, just that you have at […]

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Minimum Credit Score Requirements for the FHA REO Program – NEW CHART – FHA REO Guidelines

Question: What is the minimum credit score required for the $100 Down FHA REO Program? NEW MC Chart – FHA REO Guidelines Answer: Since the LTV exceeds 90%, 580 would be a minimum score for the $100 down program. Of course, you may be subject to other overlays from your secondary markets. Supporting Resource: NEW […]

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Fannie & Freddie Announce Agency Credit Score Solicitation – Dated February 18, 2020

Written by: Lloyd Rutherford, Staff Writer Just when you think you have mastered the credit scoring models, the agencies let you know that they may be changing them.  Read through this article to see what may be happening to credit scores in the next couple of years. Rule Synopsis: The GSE’s (Fannie Mae and Freddie […]

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FHA – Minimum Credit Score

Question: Does FHA have a minimum credit score requirement? Answer: No. The only credit-score-based limitations that FHA has (for all transactions) are below. However, it is possible that you have secondary market overlays that require a 620. Reference: 4000.1 If the Borrower’s Minimum Decision Credit Score is at or above 580 then the borrower is […]

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USDA – Credit Score for Joint Applicants – If the co-borrower has no credit score, can we use the credit score of the borrower to take advantage of better pricing?

Answer: Even though USDA does not set lender pricing or lock policy, I can tell you from experience that I’ve never been able to use the higher of the two scores to get a better lock price.  So, in your case, the zero score would be the score used, which is unfortunate because that pricing […]

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