How to Raise your FICO Score to Buy Homes in Orange County

Here is what Orange County Home Buyers need to know:

The Fair Isaac Corp. credit score (FICO) is the measurement that most lenders use to assess an applicant’s credit risk.  The score ranges from 300-850.

Lenders review the FICO score from each of the three credit bureaus: TransUnion, Experian and Equifax.  Each credit bureau can have a different score since the data from each credit bureau can be different.  The score can vary as much as 100 points.

The FICO score is composed of the following percentages:

35% is determined by your payment history (so pay your bills on time)

30% is determined by how much you owe (so pay off your credit card each month)

15 % is determined by the length of your credit history

10% is determined by how much new credit you have

10% is determined by the type of credit you use

Lenders are becoming very discriminating about what loans they approve.  It is possible for a buyer with a FICO score of 580 to qualify for a loan under FHA requirements.  Also, it is possible for a buyer with a FICO score of 620 to get a conventional loan.  However, to get a loan with terms and rates that are most desirable, the borrower must have a FICO score above 720.
 
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