JOHN & VAL EMERY
Phone:
208-484-9230
|
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Credit Grades
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.
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. |
| 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 |
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.
JOHN R. EMERY
REALTY, INC.
2111 Easy Jet St, Meridian ID 83642
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