Bad Credit Mortgage Loans - How Does Your Fico Credit Score Affect Your Loan Approval?

How "bad" is bad credit? If you can pull your creditdown payment. You should be able to get a low
report yourself and get a copy of your FICO creditinterest rate.
score, that will give you a good idea. Here is a general640 - 700 Good Credit - You should be able to be
idea of the FICO score breakdown:approved for a 100 - 125% home mortgage loan. You
500 - 580 - Poor Credit - You should be able to get ashould be able to get a great interest rate.
home mortgage loan if you are willing to make a down700+ Excellent Credit - You're in the drivers seat! You
payment, probably somewhere between 5-20%. Youshould be able to get an excellent rate with excellent
will probably need a sub-prime mortgage loan with aterms. Of course, all of these factors vary with each
slightly higher interest rate.borrower depending on the size of loan you want and
580 - 620 - Fair Credit - You're right on the edge. Youon your income and other factors.
may be able to get 100% financing or you may need aWhat is the FICO Score Based On? Most of the FICO
small down payment to make the loan work.score is dependent on amounts owed and payment
Depending on how much money you put down, youhistory. So, the fastest and best way to increase your
may be able to get prime interest rate.credit score will be to make payments on time and
620 - 640 Average Credit -You should get a 100%keep old accounts open.
home loan financing. You should not need to have a