good fico score

jeffey · Joined: 15 Sep 2009 Posts: 1 0.36 Dollars($)

in these economic conditions whats considered a good fico now.

Garysnober · Joined: 17 Mar 2009 Posts: 455 15.40 Dollars($)

Hi Jeffey, In this current economy at least a 740+ is now considered a good fico score.

raymond · Posted: Mon Oct 12, 2009 5:33 pm Post subject:

Some lenders have a 620 minimum for FHA, VA and USDA programs, but most are at 640 right now - and recently they've been migrating to 660 for those programs.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

In this economy any where above 720 is considered good score

620 is required for FHA lons only

raymond · Posted: Tue Oct 13, 2009 9:13 am Post subject:

>>620 is required for FHA lons only

That's inaccurate. FHA doesn't have any FICO requirements, its the Investors that impose the FICO requirement, so every Lender is different.

pacuniondirect doesn't have a FICO requirement for their FHA streamlines

coralmortgage goes down to 580 for purchase and refinance

GMAC has no score FHA streamlines and 600 on purchases

wdmortgage goes down to 580 for purchase and refinance, and no score streamlines

topdot goes down to 560

[Links deleted as per forum rules. Thanks.]

jveenstra · Posted: Tue Oct 13, 2009 11:20 am Post subject: FICO

Raymond, FHA is making the minimum score 620 on December 15, 2009.

You are techinically correct for the moment, but, for all practical purposes, it is almost 620.

raymond · Posted: Tue Oct 13, 2009 8:01 pm Post subject:

John, which Mortgagee Letter can I reference to confirm what you're saying?

gmakerley · Posted: Wed Oct 14, 2009 1:15 pm Post subject:

to get back to the beginning: 740 is the score will will afford you the best of rates on conventional loans. for many investors, it will take a 700 score to get you the best fha rate.

there are lenders currently trafficking in the 550+ range on fha loans, but that's only if they can get the borrower(s) approved. that's not a given in any case.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

Probably the reates for the peoplein 550 range will be higer for sure than any one else

gmakerley · Posted: Sat Oct 17, 2009 9:38 am Post subject:

in all likelihood, that's true, sunny. there are add-ons to pricing for reduced scores with most everyone these days. fha is still definitely more forgiving than fannie mae or freddie mac, nonetheless.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

Geoge where and how the slab varies.

My questions is if the current rate is 5% for a 30 years fixed and if some one with 740 can qulify for that, then how will ti start goign up as the credit score starts goign down

With out considering the other factors

gmakerley · Posted: Mon Oct 19, 2009 10:27 am Post subject:

"as the credit scores starts going down" has no relevance on a fixed-rate mortgage loan. if someone is getting a brand-new loan, the price that person pays will be calculated using the credit score. for example (non-scientific example), if the rate is 5%, with 2 points, it might cost an extra .25 point for someone with a credit score of 700; an extra .5 point for 680, and so on.

finally: slab??

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

Thanks for sharing George

gmakerley · Posted: Tue Oct 20, 2009 10:10 am Post subject:

unfortunately, your thanks didn't answer my question about "slab." what in the world is "slab"?

jveenstra · Posted: Tue Oct 20, 2009 10:54 am Post subject: DTI

Raymond, the announcement of FHA minimum credit score going to 620 is not in a Mortgagee Letter.
It is in FannieMae Announcement 09-29 dated September 22, 2009, page 2:
A minimum credit score of 620 will apply to all mortgage loans ...insured by or guaranteed by a federal gov't agency(HUD,FHA,VA and RD)...

DU Version 8.0 December Release weekend of Dec 12 will implement that change in DU....as well as new max DTI 45% and 50% with compensating factors.

Changes do not apply to DU Refi +

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