Many potential home buyers believe that they need a score over 780 to qualify. In today’s world, this is no longer true.
One of the more common misconceptions keeping potential home buyers from beginning their search has been the fear that their credit score is too low.
According to a recent study by The Wharton School of Business, the good news is that over 50% of all approved loans had a FICO Score under 750.
Taken from a recent KCM blog post (full article link below), this depicts nicely what the real scoop is:
Below is a breakdown of the FICO Score Distribution of all closed (approved) loans in August from Ellie Mae’s latest Origination Report.
The chart above illustrates the point that low credit scores are not a reason to avoid seeking a mortgage. More than half of all loans in August were awarded to individuals with credit scores as low as 600.
At Sun Pacific Mortgage we welcome not only low credit scores, but bankruptcies, imperfect properties, difficult-to-prove income and a host of other issues that the conventional lender won’t consider. We finance jumbo loans, bridge and short term loans, owner occupied purchases and refinances, investment purchases, commercial and land.
Call today with any questions or scenarios and we’d be happy to help!
Original Keeping Current Matters blog link: http://www.keepingcurrentmatters.com/2016/10/17/dont-disqualify-yourself-over-half-of-all-loans-approved-have-a-fico-score-under-750/