Interested in understanding how far a credit score can drop with late payments, foreclosure, short sale activity or bankruptcy?
This should give you an idea:
30 days late: 40 â€“ 110 points
90 days late: 70 â€“ 135 points
Foreclosure, short sale or deed-in-lieu: 85 â€“ 160 points
Bankruptcy: 130 â€“ 240 points
To come to these figures, Fair Isaac created two hypothetical consumers, one who starts out with a fair-to-middling score of 680 and the other with a very good one of 780. (FICO scores range from 300 to 850.)
The hypothetical person with the 780 FICO has 10 credit accounts versus six for the 680, plus a longer credit history, lower utilization of total credit limit and no missed payments on any account. The other consumer has two slightly damaged accounts. Neither have any accounts in collection or adverse public records.
Borrower #1 Borrower#2
680 780 Initial Score
620-640 670-690 30 Day Delinquency
595-610 645-665 90 Day Delinquency
575-595 620-640 Foreclosure Short Sale
530-550 540-560 Bankruptcy
Source: Fair Isaac Corp.
640 is the bottom score (again with few exceptions) that Kentucky Mortgage lenders will permit. Below a 640, then youâ€™re in a world of hurt. Even at 640, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 720 is when you really start to get in the â€œas a lender we love youâ€ credit score. 740 is even better. Watch your credit!!!!! Check out my post:
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Kentucky Mortgage Loan Approval Credit Requirements for 2013