Keep that Credit Score Over 680

We’ve said before that your credit score is the most important factor in what kind of mortgage package you’ll get and that’s becoming even more true with rash or delinquencies this year. Next spring if you’re putting less than 30% down on a home and have a credit score under 680 you will have a higher rate on your mortgage. Rain City Guide’s mortgage guru Rhonda Porter gives us the skinny:

Here’s a breakdown of the price changes on March 1, 2008 for loans with a loan to value of 70.01% and above:

Credit Score =  Pricing Adjustment

• 679-660 = 0.75%
• 659-640 = 1.25%
• 639-620 = 1.75%
• Below 620 or missing credit score = 2.00%

As a result of mortgage insurance (MI) company restrictions and SunTrust’s effort to improve loan performance, effective immediately for all new applications taken on or after today, Friday, November 30, 2007, the minimum credit score requirements as outlined below apply. 

For ALL traditionally underwritten and AUS (DU and LP) processed Agency loan transactions [Fannie Mae/Freddie Mac]: 

• A minimum 600 credit score (for ALL borrowers) will be required for LTVs up to 95%, regardless of the AUS approval, and
• A minimum 620 credit score (for ALL borrowers) will be required for LTVs 95.01-100%, regardless of the AUS approval.
• For ALL traditionally underwritten and AUS (DU and LP) processed Government (FHA and VA) loan transactions, a minimum 600 credit score (for ALL borrowers) will be required regardless of the LTV/TLTV or AUS approval.