Question Details

Propertyvirg…, Home Buyer in Daphne, AL

What are the tiers to financing and the corresponding credit scores?

Asked by Propertyvirgin, Daphne, AL Fri Jul 11, 2008

To clarify, is it typical that persons seeking financing fall into 1 of 3,4, or 5 categories? Those being excellent, good, fair, unfavorable? And what score would land a person in a position to get the best possible deal? second best?

For example 800-850 is an excellent score and preferred borrower, followed by....

Just trying to get a general idea. Thanks for your time!

Help the community by answering this question:


Credit score, Loan-To-Value and Loan Amount are going to be the 3 main factors which will adjust from we call the Par Rate. Every lender will make different adjustments to a going interest rate based on how you specifically structure your loan. From that you take into account the loan officer's profit. Assuming 2 lenders had identical par rates and adjustments to a loan, the reason one loan may be priced higher compared to another could simply be the LO wants to make more money off of your loan.

By the way, in this market, most lenders would kill to have borrowers with any credit score above 720.

Luke Allison
Flagstar Bank
1 vote Thank Flag Link Sat Jul 12, 2008
If your credit score is above 750 that qualifies you for the best rate. 720 is the next tier down, Under 700 is after that, down to 650 and so forth. The higher the score, the better the rate. If you are under 620 it is hard to get a good rate unless you are a first time borrower and just don't have much credit under your belt. FHA loans allow you to build your credit for first time home borrowers and also provide you with a fairly good rate. Good luck in your purchase.
1 vote Thank Flag Link Fri Jul 11, 2008
Any folks that may be reading this-

Are things essentially still the same? Do you agree with the responses below?

0 votes Thank Flag Link Tue Nov 25, 2008
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