Here are the underwriting guidelines, rates and credit matrix criteria used by DecisionOne Mortgage...I'm assuming they are similar to other banks though they do handle B-D credit. https://www.d1online.com/content/d1_rate_sheet.pdf https://www.d1online.com/content/d1_credit_matrix.pdf https://www.d1online.com/content/d1_guidelines.pdf According to their criteria: A- is 560-579 with 1 30-day late OR 580 to 600+ with 2 30-day lates "Credit Scores (For streamlined loans) ~ Minimum 525 ~ The lower of 2 or middle of 3 scores for the primary wage earner will be used ~ All scores for all borrowers must be greater than or equal to 500 ~ Reject scores or "no" scores - NOT ALLOWED ~ 2 repositories are required - 1 must be pulled by Decision One ~ Loan Size > $400,000 require a merged credit report pulled by Decision One ~ All credit reports must be no older than 30 days old - from date of closing Minimal Credit Profile ~ 1 Major trade with a minimum high or present balance >= $5000 (**NOT High Credit) open 24 months PLUS 3 additional trades reporting 12 months open, active and paid as agreed for LTV's > 90% ** High balance is defined as the largest used portion of the high credit limit reporting on the credit bureau. ~ If above criteria are not met, credit is considered limited and graded as a "B"; max LTV 90% ~ No credit history limited to 80% LTV."
They have loans out there with no income or tax return verification. I'll check with a mortgage banker that I know what the other reqs. are. PMI is for loans that do not have 20% of the appraised value paid as down payment. You can get the property re-appraised and if the appraisal comes back accordingly, they will drop the PMI. Charlie
Jonesing, On that minimum credit profile: I have bk discharged 6 yrs ago. No bank cards, no retail cards. Current mortgage has 3 90 day lates from last year. Is now reporting paid as agreed. If I can get shown as AU on a bank card, what LOC should I be looking at? One with a high LOC (15K) or not so much?
I have no idea hockeymom...I don't work for them But there's 20 pages or so to their underwriting criteria. I'm sure they have info in there somewhere. That list I posted was from one of their documents. They do have other criteria for no doc or no income verification etc loans. I think the gist is, the higher your current score and the more cash you have (your own, not gifts or loans) to put down, then they will overlook a lot more stuff. But if you have run of the mill scores (like we did) then you're going to have to document, document, document and explain things away. She even had to write a letter for their files explaining why she went past due 60-days on an account from 3 years ago!
The lowest I have heard is 620 to even be considered for a "A" loan and even then more documentation is required. I think it is from Fannie Mae. I was wondering if that was industry standard.
