Posted on: 17th Nov, 2009 05:14 pm
The answer is hear With a 720 Credit Score,
You will save money. 720creditafterbk
You will save money. 720creditafterbk
Hi,
In order to get a conventional loan, the minimum credit score required is 720. Most of the lenders would not approve you a loan if you do not have a credit score of 720 or above. After a bankruptcy discharge, you won't get a loan immediately. You will have to wait for 2 years to get a FHA loan and 4 years to get a conventional loan if you filed for Chapter 7. If you had filed for Chapter 13, then you'll have to wait for a year to get a FHA loan and 2 years to get a conventional loan.
Thanks
In order to get a conventional loan, the minimum credit score required is 720. Most of the lenders would not approve you a loan if you do not have a credit score of 720 or above. After a bankruptcy discharge, you won't get a loan immediately. You will have to wait for 2 years to get a FHA loan and 4 years to get a conventional loan if you filed for Chapter 7. If you had filed for Chapter 13, then you'll have to wait for a year to get a FHA loan and 2 years to get a conventional loan.
Thanks
hi,
A person with a 720 credit score will be given an interest rate of 3% whereas the person with a 659 credit score will be offered an 8.55% .
A person with a 720 credit score will be given an interest rate of 3% whereas the person with a 659 credit score will be offered an 8.55% .
marklavender1, where did get this information? that is preposterous.
there are no 3% mortgages, and nobody with a 659 score is going to be saddled with an 8.55% rate either.
is this the deal on another continent...another planet? come on now, please be sane about it.
there are no 3% mortgages, and nobody with a 659 score is going to be saddled with an 8.55% rate either.
is this the deal on another continent...another planet? come on now, please be sane about it.
To answer the original question, a 720 credit score as far as mortgages are concerned, is important because a borrower is eligible for a better interest rate than if the score were lower.
Pretty soon, in a month or so, the minimum credit score for a Fannie Mae or a Freddie Mac or an FHA mortgage for purchases will be pretty much 620 across the board. (Refinances may have lower scores in some cases).
Also, VA and RHD mortgages.
The higher the credit score, the better the interest rate, until you get to a 740 credit score and above that the rate is pretty much the same.
Higher down payments can sometimes compensate for lower credit scores.
In summary, a credit score over 620 with minimum down payments will have mortgages available.
The higher the credit score and/or down payment, the better the interrest rate avaialble.
There are portfolio lenders who have pretty much the same rate for any score over 620, however, they have stricter debt ratio guidelines and often do not even lend for less than a 20% down payment.
Pretty soon, in a month or so, the minimum credit score for a Fannie Mae or a Freddie Mac or an FHA mortgage for purchases will be pretty much 620 across the board. (Refinances may have lower scores in some cases).
Also, VA and RHD mortgages.
The higher the credit score, the better the interest rate, until you get to a 740 credit score and above that the rate is pretty much the same.
Higher down payments can sometimes compensate for lower credit scores.
In summary, a credit score over 620 with minimum down payments will have mortgages available.
The higher the credit score and/or down payment, the better the interrest rate avaialble.
There are portfolio lenders who have pretty much the same rate for any score over 620, however, they have stricter debt ratio guidelines and often do not even lend for less than a 20% down payment.
in general terms the better your credit score, the safer of a prospect you present to the lender, and therefore the better the interest rate you can get.
in practical terms though it's more like: If you're over this level you get the standard rate, if you're under it you get penalised with higher interest to compensate for your increased risk of default.
in practical terms though it's more like: If you're over this level you get the standard rate, if you're under it you get penalised with higher interest to compensate for your increased risk of default.
720 is the current cutoff for getting the best rates from most mortgage lenders.
There are many other things besides mortgages and loans that your credit score affects though.
[Link deleted as per forum rules. Thanks.]
There are many other things besides mortgages and loans that your credit score affects though.
[Link deleted as per forum rules. Thanks.]
absolutely, everyone...we all ought to strive to get to 800. it's not so easy, though, but worth making the effort.