If there is a borrower with a score of 559-500 or lower, would we use non-traditional credit (which is higher) or the lower score to determine RBP?
A. The borrower representing the greatest risk to the Department will determine the premium charged. For example, if the decision credit score for one borrower is between 559-500 and the other borrower is in the non-traditional credit category, the decision credit score between 559-500 is used to determine the premium. However, if the decision credit score for one borrower is between 639-600, and the other borrower is in the non-traditional credit category, the non-traditional credit category is used to determine the premium. Housing Counseling & Discounts on the Mortgage Insurance Premium Q. Why did FHA only offer a premium discount to first-time homebuyers with FICOs between 559-500 and LTVs above 95? Additionally, do first-time homebuyers only get the 25 basis point discount with housing counseling where their LTV is above 95? A. The criterion for offering this discount to first-time homebuyers is set by the law. Yes, first time homebuyers only get the 25 basis point discount with h
Related Questions
- If there is a borrower with a score of 559-500 or lower, would we use non-traditional credit (which is higher) or the lower score to determine RBP?
- What if a score if affected by derogatory credit information that the borrower believes is not his or hers?
- What credit bureau is used to determine a borrowers credit worthiness?
