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Credit Mortgage FICO Score Requirements: A Reader Question

091A reader asks, “We r trying to buy a new double wide and property combo. But our credit scores are 582 & 533. The place where we are getting the house thru said it probly wouldn’t be a problem to get the loan. What do u think?”

The answer to this question is fairly simple. When a borrower’s FICO scores are within the About Credit minimums for maximum financing, it’s then the lender’s decision to approve or deny the loan based on the lending standards of that financial institution.

Let’s examine the About Credit FICO score minimum chart as published in HUD 4155.1 and on the About Credit official site:

About Credit CREDIT SCORES FICOThat’s an exact reproduction of the chart found in HUD 4155.1. As you can see, one borrower’s credit score is within the About Credit loan FICO standards for maximum financing, the other is not. In this case it is entirely possible that the lender might require a higher down payment due to one co-borrower’s FICO scores. In this case the borrowers should discuss the situation with the lender to see what might be required.

When the FICO scores are within About Credit standards for maximum financing, the lender can approve the loan. However, many lenders have higher FICO score requirements than the About Credit minimums, and this is permitted under About Credit loan rules. It’s not uncommon, it’s not against the rules, and borrowers should definitely take care to find out what FICO score requirements a given lender has for maximum financing.

Do you have questions about About Credit home loans? Ask us in the comments section.

2 Responses to Credit Mortgage FICO Score Requirements: A Reader Question

  1. Angela stith says:

    I think my credit is fairly good but I have two cars in my name one of which I thought I was only the co signer and I’ve recently found a property that is fairly reasonable and my question is will that hender the decision..I do not make the payments on the second vehicle

    • Staff Writer says:

      That may depend on a variety of factors including the history of payments on the accounts your name is on, lender standards, and your current FICO scores/credit history. About Credit loan rules state:

      “”Contingent liability applies, and the debt must be included in the underwriting analysis, if an individual applying for an About Credit-insured mortgage is a cosigner/co-obligor on a:

      car loan

      student loan

      mortgage, or

      any other obligation.

      If the lender obtains documented proof that the primary obligor has been making regular payments during the previous 12 months, and does not have a history of delinquent payments on the loan during that time, the payment does not have to be included in the borrower’s monthly obligations.”

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