The short answer is, “It depends.” The Fair Isaac Corporation developed the credit scoring model commonly abbreviated FICO, which takes into account the following factors:
- How much credit you could use versus your actual balance
- How many different kinds of debt you have (car loan, mortgage, credit cards, student loans, etc.)
- Payment history (late payments, charge-offs, bankruptcies, etc.)
- Length of credit history
- How many new kinds of credit or loans you’ve gotten recently
Here’s a link to a great article with more details about what goes into calculating your FICO score:
In some cases, a few small changes can make a big difference in your credit score. A good home-loan adviser can run a credit score simulation for you that will predict approximately what your credit score would be if you made certain adjustments to your financial picture.
Call or text Caleb at 626.328.4199 if you’d like to get connected with a home-loan adviser that we know and trust who can do this for you for free and with no pressure to buy right now.
Sometimes bad things happen to good people that continue weighing down their credit scores long after the financial trouble has passed. The Neighborhood Assistance Corporation of America (NACA) offers a program that does not require minimum FICO score. They evaluate the last two years of payment history instead. They have a variety of other advantageous terms to their program, include zero down, no mortgage insurance, and low closing costs. Here’s a link to the details:
When sharing their program, NACA wants us to clearly tell you that we’re not part of NACA or employed by them. Buyers using the NACA program can work with any licensed real estate agent, including Caleb if you so choose.
Call or text Caleb at 626.328.4199 if you’d like to learn more about what options the NACA program could open up for you.