The Basics of Credit Scores for Kentucky Homebuyers and Homeowners
Recent studies suggest that home buyers with low credit scores and high debt-to-income ratios may have an easier time qualifying for financing.
New loans for borrowers with FICO scores reaching as low as the 400s jumped from 21.9 percent in 2009 to 29.7 percent last year, according to the study. FICO scores range from 300 to 850.
From January to March of this year, borrowers who were approved for FHA loans—which offer low down payment options for first-time home buyers—had an average credit score of 672, according to FHA data. During that same period in 2011, the average credit score for an FHA borrower was 701. FHA borrowers also have had higher debt-to-income ratios in recent years. Debt-to-income ratios measure monthly household income against other debt, such as credit cards, auto loans, and personal loans.
Between January and March, about a quarter of FHA borrowers had a DTI of more…
View original post 215 more words
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 