EXCELLENT 750 - 840 Do you know your number? Find out! GOOD 660 - 749 Credit standards are changing - talk to Sue about it. FAIR 620 - 659 Get one credit report and score for just $15. POOR 0 - 619 Get all 3 credit reports, scores and info for just $25. Grade | Credit Score | Debt Ratio | Max LTV | Delinquencies
within last
12 months | Credit | Bankruptcy / Foreclosure | Mortgage | Installment | Revolving | A+ A | 720+ 700+ | 36-38 | 95-100 | 30 days | 0 | 0-1 | 1-2 | Good/excellent credit during last 2-5 years. No mortgage lates within 24 months. No bankruptcy within the last 2-10 years. | 60 days | 0 | 0 | 0-1 | A- | 680+ | 45 | 95 | 30 days | 0-1 | 1-2 | 2-3 | No 60-day mortgage lates. Minimum 24-48 months since bankruptcy discharge. | 60 days | 0 | 0-1 | 0-2 | B+ to B- | 650+ | 50 | 75-85 | 30 days | 1-2 | 2-4 | 3-5 | 24-48 months since bankruptcy discharge. Re-established credit. | 60 days | 0-1 | 1-2 | 1-2 | C+ to C- | 620+ | 55 | 75 | 30 days | 3-4 | 4-6 | 5-7 | 12-24 months since bankruptcy discharge. | 60 days | 0-2 | 2-4 | 3-5 | D+ to D- | 550+ | 60 | 65-70 | 60 days | 1-3 | 5-7 | 6-8 | Bankruptcy discharged within last 12 months. | Poor payment record with limited 90 day, isolated 120 day lates. | E | 550- | 65 | 50-65 | Poor payment record with a pattern of 30, 60 and 90+ lates | Possible current bankruptcy or foreclosure. Stable current employment. |
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DON'T HAVE GREAT CREDIT? CONSIDER GOVERNMENT LOANS FHA MORTGAGES FOR LESS THAN PERFECT CREDIT BORROWERS FHA (Federal Housing Administration) insures loans - they do not make loans - you still go to mortgage brokers and banks to work with you on applying for the loan/mortgage. Typically, FHA wants good credit history but less concerned with your credit "score". FHA wants stable employment at least for past 2 years, preferably in the same job or type of job. Qualifying includes taking your total mortgage payment including taxes and insurance (PITI) and divide it by your total monthy gross income (all borrowers) and have that number under 29%. Also, FHA wants your total monthly debt (PITI and all other credit payments, but not utility bills) divided by your total monthly gross income (all borrowers) to be under 41%. FHA takes a common sense approach to approving your loan, so there is some give and take. The loan limit for Single Family properties for greater Minnesota is $271,050 and for the Twin Cities its $318,500.
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