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Mortgage
companies often grade your loan based on certain credit-related items such as
payment history, amount of debt payments, bankruptcies, equity position, and
your credit score. Below is a guide to help you
estimate your credit grade. This is only a guide as many companies have
exceptions that may result in more strict or more lenient guidelines. We have
town homes in golf communities.
A General Guide to Credit Grades
|
Quality
Level
|
Credit
Score
|
Debt
Ratio
|
Max
LTV Ratio
|
History
for Credit Type
|
Delinquencies:
|
Typical
Additional Requirements
|
|
|
# of
times
|
# of
days
|
Within
last
|
|
|
A+ to
A-
|
670+
660
|
To
55%
|
To
107%
|
Mortgage
Installment/
Revolving
|
0
0 - 1
0 - 1
|
-
30
60
|
24 mo
12 to 24 months
|
Good/excellent
credit during last 2 to 5 years. No bankruptcy within the last 2 to 10
years.
|
|
B+ to
B-
|
620
|
55
|
95 -
100
|
Mortgage
Installment/
Revolving
|
2 - 3
2 - 4
0 - 2
|
30
30
30
|
12 mo
12 mo
12 mo
|
No
60-day mortgage lates. 24 - 48 months since bankrupt discharge. Higher
number of rolling lates may be allowed.
|
|
C+ to
C-
|
580
|
55
|
100
|
Mortgage
Installment/
Revolving
|
3 - 4
0 - 2
4 - 6
2 - 4
|
30
60
30
60
|
12 mo
12 mo
12 mo
12 mo
|
12 -
24 months since bankrupt discharge. High "rolling" lates
allowable.
|
|
D+ to
D-
|
550
|
50
|
85 -
95
|
Mortgage
Installment/
Revolving
|
2 - 6
1 - 2
|
60
60
|
12 mo
12 mo
|
Bankruptcy
discharge within last 12 months. Judgments to be paid w/ loan proceeds. Not
in foreclosure.
|
|
|
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Poor
payment record with limited 90 day, isolated 120 day
|
|
E
|
520-
|
50
|
80-90
|
Mortgage
Installment/
Revolving
|
Poor
payment record with a pattern of 30, 60, and 90+ lates
|
Possible
current bankruptcy, foreclosure Stable current employment
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The figures shown here are estimates. When trying to figure your credit
grade, keep in mind the following principles:
Other Things Being Equal
When your have bad credit, all of the other aspects of the loan need to be in
order. Equity, stability, income, documentation and assets play a larger role
in the approval decision.
Worst Case Scenario
When determining your grade, various combinations are allowed, but the worst
case will push your grade to a lower credit guide. Late mortgage payments and
bankruptcies are the most important.
Going Once, Going Twice
Credit patterns are very important. A high number of recent inquiries and
more than a few outstanding loans may signal a problem. A "willingness
to pay" is important, thus late payments in the same time period is
better than random late payments as they signal an effort to pay even after
falling behind. Homes for sale in Pinehurst NC.
This site was developed to
provide information on Pinehurst real estate including Pinehurst Golf
and Waterfront homes, Pinehurst condos, and Pinehurst and Southern Pines
Commercial real estate.
Please feel free to visit any of our sites for additional information.
Sotheby's International Realty
Dale
Heck – Realtor/Broker
910-528-4652
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