Compare Mortgage Quotes

sagarthakar · Joined: 15 May 2007 Posts: 71 27.67 Dollars($)

My Question is that there are many Lenders who offer Agency Loan Programs i.e. Fannie Mae or Freddie Mac sponsored Loan Programs ... to name a few " Freddie Mac ALT 97 212 "... This program is offered by Citimortgage, in this program the lender says that Min. FICO in not required and also in their Section 800 Underwritting Guidelines the lender has given Bankruptcy/Foreclosure/ Open Accts requirement but nothing about how much FICO is required, so in this case do we have to assume that the FICO should be Greater Than or Equal to 350 ????? or shud it be 620 ?? What exactly happens when any Lender mentions that Min.FICO is not required.

Can anyone help me out please.

Guest

wablola · Posted: Tue May 15, 2007 12:49 pm Post subject:

Hello and welcome to Mortgage Fit sagar.thakar,

These types of loans are for some subprime borrowers. These type of loan programs usually have higher rates.

This type of loan may work for you depending on what you have plans for your new purchase home or current home and current financial situation.

sagarthakar · Joined: 15 May 2007 Posts: 71 27.67 Dollars($)

Hi Wabola,

Thanks for your reply, but usually a lender provides credit grades and credit history when he launches any Sub-Prime program which have a blend of features involved in it. In a Sub-PRIME Program Credit Score is must and is mandatory for any borrower to qualify.

When we deal with Agency Programs mostly the minimum FICO required is 620, but when a Lender says No Minimum FICO Required then does he mean that he will qualify the Borrower even if he has a satisfactory Credit History Record and a Credit Score of >= 350 ... or will he just get it determined by DU / LP AUS Engines ???

I am still not sure what the Lender means by this, will have to do some research on this issue.

Regards

Sagar

jameshogg

Welcome Sagar.

I guess your lender meant that you should a minimum FICO score as is preferred by most lenders in the business. The minimum score is around 620 and anything above it will help you to get a reasonable rate of interest. A score of 350 will be too low to help you get qualified for Fannie Mae or Freddie Mac sponsored mortgage loan.

Thanks

sagarthakar · Joined: 15 May 2007 Posts: 71 27.67 Dollars($)

According to my research I have always noted one thing, Lender will always mention a Credit Score incase of a Non-Agency / Jumbo / Alt A or any SubPrime Program and will ask for Manual Underwritting, there are some special cases where the Lender provides " ALTERNATE CREDIT HISTORY " for the Loan Program.

Now coming back to Agency Loan Programs, for ex : we will consider Washington Mutual / Citimortgage , these Lenders have provided a min. Fico of 620 in few Agency programs but in many programs he has clearly mentioned that Minimum FICO requirement is none, and refers to follow the Underwritting Guidelines, when we go through the guidelines there the Lender mentions that inspite of no Minimum FICO requirement the borrower should get some Traditional Credit History , as well he provides an option of Non-Traditional Credit History which means he is allowing " ALTERNATE CREDIT HISTORY ".

In Agency Loans, AUS is always required and a positive response is required for a borrower to qualify, so if the borrower provides the required Credit History, and if he has a Credit Score Greater Than or equal to 350 still he gets eligible.

But if he comes with a " 0 " credit score he might not be eligible for the Loan, as in these scenarios the Credit Score is always DETERMINED by DU or LP.

Correct me pls if I am wrong.

Regards

Sagar

Guest

DU / LP AUS Engines?? what is it

colin · Posted: Thu May 17, 2007 1:36 pm Post subject:

Hi,

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1