Tag: usda credit score

FICO score dropped from 800 to 580 overnight, here’s how it happened..


via FICO score dropped from 800 to 580 overnight, here’s how it happened..

 

FICO score dropped from 800 to 580 overnight, here’s how it happened..

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I talk to a lot of people every week about their credit scores.  I spoke with a gentleman yesterday that was telling me about his credit score issue.

He was recently out of the country for a couple months and one of his accounts’ auto pay amount changed which only covered part of his monthly payment.  The bank noted this on the account and reported him late 30 days because the full payment amount wasn’t received.

Prior to this event his credit scores were in the 800’s, now they are in the high 500’s.  It had taken him years to achieve such a high credit score, and only days to lose that score.

Payment history is the biggest factor in your FICO score.  It amounts to 35% of your credit rating.

If there’s anything you do with your credit, make absolutely sure you get your monthly payment (in full) in on time. It will take years for him to get his scores anywhere near 800 again.

If you need help raising your credit scores please contact me direct.  I can review your credit reports and give specific direction on how to get your scores up.

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What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2018?


via What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2018?

What kind of credit score do I need to qualify for different first time home buyer loans in Kentucky?
Answer below:
Most lenders will wants a middle credit score of 620 to 640 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 620 to 640 middle score on their programs.
If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.
Another popular no money down loan is VA. Most VA lenders will want a 620 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.
A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.
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