Everyone’s credit score is different.  There are many different loan programs to fit most credit scores.  If you are wondering where your score rates, here they are:

Superior Rating                                                 720 and up      (A Paper)

Excellent Rating                                                680 to 720      (A to B Paper)

Very Good Rating                                              640 to 680      (B Paper)

Good Rating                                                      580 to 640      (Subprime)

Fair Rating                                                        550 to 580*    (Subprime C)

Imperfect Rating                                             550 and below*  (C Paper)

* Credit Ratings in these categories can still be eligible for financing depending on your most recent credit history.

The rankings listed above (A, B, C, and Subprime) are categories used in the mortgage lending business to classify what type of loan you may be offered.  A Paper being the best, you can expect the best rates and lowest amount of paperwork.  As you move down in rank, you can expect a higher interest rate and you will also be expected to provide documentation on all aspects of your salary and assets.  Also, the lower your score the higher your down-payment will be.

If you can qualify for an FHA loan, which is a federally backed loan, your down-payment will be a minimum of 3% of the contract sales price on your home no matter what credit score you have.  Using the FHA loans, most buyers can get a lower interest rate than they could on a conventional loan.  For more information on the different types of financing, please check out my website, www.kimshuford.com/services or check with your lender to see what type of loan you qualify for.

Many people who are unfamiliar with credit and how it works are unsure whether they can buy a home or not.  If you fall into this category, even if you think your credit is not good enough, check with your lender or contact me at kim@kimshuford.com and I will be glad to show you the steps to take if you can’t buy a home right now. 

Don’t waste your money on credit repair services when you can do it all yourself with a little time and effort.    Most credit repair agencies make big promises, fail to deliver, and then you find yourself in worse shape than before.  For more information, please read the following article by the Federal Trade Commission on credit repair.  www.ftc.gov/bcp/conline/pubs/credit/repair.shtm.  It’s a great article on how to repair your own credit and what’s wrong with credit repair agencies. 

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