Share this page: Pay it forward so others can benefit...
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

Mortgage Loan Guidelines: How Mortgage Lenders Rate Your Credit Scores

1-2-3 Credit & Me: Learn how you can Stabilize, Improve & Maintain your credit throughout your lifetime (Part of the Real Estate & Finance 360 Degrees Series of Books Book 6) by THOMAS (TJ) UNDERWOOD  | Sold by: Services LLC | Oct 19, 2020, updated Summer 2023

What's inside 1-2-3...




Learn what others are saying about our latest blog (Created in 2014) by Clicking Here…

Learn about 15 questions that you need answered "prior to" purchasing your new home...

Learn about "What is Inside" The Wealth Increaser...Our New Book...

Purchase HOME BUYER 411 The Smart Guide to Buying Your Home...©2014, 2023

Purchase HOME SELLER 411 The Smart Guide to Selling Your Home ©2014, 2023
Learn what is inside "The 3 Step Structured Approach to Managing Your Credit & Finances"©2014, 2023

Wealth Building Now—new book sample chapter...

Who is Thomas (TJ) Underwood

If you are considering purchasing a home or refinancingyou can go to or along with local mortgage lenders in your areato determine what loan will best suit youand your family.  You can compare closing costs, APR's and Par rates to determine what loan will best serve yourand your family's long-term interests.

Learn about the "New (2015) Home Loan Guidelines" that can benefit you and your family...

Shop on eBay----Shop on My New Book

Learn how to apply the— “Keys to Success”—in your life

General Guideline of How Lenders Rate Credit Scores

720-higher A

Take your choice of loans at the lowest cost, including risk-based loans such as stated Income and Interest Only. Be aware that stated Income and Interest Only loans are more difficult now even with scores over 720.

620-719 A-

You qualify for conforming, conventional loans. You’ll pay slightly more for risk based loans.

600-619 B

You may take a FHA/VA loan or even a low-downpayment loan with desktop underwriting. FHA/VA now require a middle score of 620 or higher.

575-599 C

You can qualify for a sub-prime loan, but your interest rate will be significantly higher. Expect a prepayment penalty.

500-559 D

Most lenders will deny your loan: but there are a few “hard money” sub-prime lenders who will approve a loan if you have sufficient down payment. Mortgage brokers have access to these wholesale lenders.

Only the rare sub-prime lender will approve a loan for someone with a score below 500, and a large down payment will be required---usually 25 to 50 percent. Other conditions will apply as well.

Other Key Tips:

If your home is foreclosed--5 year moratorium on purchase of another house with most lenders

After Bankruptcy Discharge (Chapter 13) you can apply for a loan if middle score is 620 or more.

Chapter 7 with no foreclosure FHA loan available after 3 years.

Judgments on your credit report. Judgments must be paid.

Judgments not paid will stop the progress of your score going up.


About This Article:


The above article was written by Thomas (TJ) Underwood.   Thomas (TJ) Underwood is an active real estate broker in the state of Georgia and is the writer behind The Wealth Increaser, Home Buyer 411,  Home Seller 411, The 3 Step Structured Approach to Managing Your Finances, Managing & Improving Your Credit & Finances for this MILLENNIUM and CREDIT & FINANCE IMPROVEMENT MADE EASY—FREE GUIDE. 

He is the creator of where he regularly blogs about helping consumers improve their credit, finance and real estate pursuits in an intelligent, consistent and proactive manner.  He’s always looking for ways to make intelligent finance improvement happen for those who “sincerely desire” success in their future. 

You can contact him from a number of sources but the most direct way is to contact him through the contact us block that can be found at the bottom of this page. 

You can also get other highly relevant tips on "living your life more abundantly" and possibly earn revenue at the same time by linking to

Return to Top

Return from Mortgage Loan Guidelines to Real Estate Success Tips

Return From Mortgage Loan Guidelines to The Best Atlanta Real Estate Advice Home Page

Thomas (TJ) Underwood has been providing financial advice as a tax practitioner since the mid 1980’s and began his financial planning career (while earning a Bachelor of Science Degree in Business Administration/Finance/Marketing), in Detroit at Wayne State University.  From 2010 up to the present he continues to provide visitors timely personal finance and wealth building advice and articles—including real estate advice—on 3 sites that he has created since 2010. 

Even though he is an active real estate Broker in the Atlanta Metropolitan area, he continues to blog consistently to help visitors and those who desire lasting financial and life changing success the opportunity to change their life for the better in a more efficient way. 

You can learn more about him and gain access to all three sites that he has created by going to Who is the creator of page.

Contact Us

Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.


Copyright® 2002-2024