New mortgage FICO score for first time home buyers

By
Mortgage and Lending with Platinum Home Mortgage NMLS ID#283159

New FICO Mortgage Credit Score.

On July 10, the consumer credit score giant FICO   joined with data firm CoreLogic in announcing the new score designed specifically for mortgage lenders called the FICO Mortgage Score Powered by CoreLogic.

The mortgage score is based on information provided by CoreLogic in a detailed report called the CoreScore Credit Report.

The report includes information that other credit reporting agencies, such as Experian, TransUnion and Equifax, don't factor into your traditional reports.

If you were late on child support payments, applied for a payday loan or had trouble paying your rent on time, it could show up on your CoreScore Credit Report and be factored into your new FICO mortgage score.

"But on-time payments on a second mortgage will also be factored into your score, as well as all those months you paid your rent like clockwork."

It's not intended as a replacement for traditional FICO scores, but as another tool for mortgage lenders to use early on, at the prequalifying stage for borrowers.

It remains to be seen who will benefit the most from this new report, but according to CoreLogic, If you're a first time home buyer who doesn't have a lot of established credit you could be the big winner.

"Advocates counter that the CoreScore report helps consumers more than it hurts them. That's especially true, they say, for consumers who have thin files and would have otherwise been turned down by lenders because they didn't have enough experience with traditional loans, such as credit cards and auto loans."

Nontraditional data "could help that consumer who has positive alternative credit get the credit they deserve," says FICO's Joanne Gaskin.

To read the complete Fox Business News Article, click here

We have helped hundreds of first time home buyers and their families take advantage of these favorable market conditions to become first time home owners. They all have one thing in common, they contacted us

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Topic:
Home Buying
Location:
California Riverside County
Tags:
first time home buyer incentives
first time home buyer loans
first time home buyer programs
first time home buyers credit

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Rainmaker
542,744
Wayne Johnson
San Antonio REALTOR, San Antonio Homes For Sale
Coldwell Banker D'Ann Harper REALTORS®

Greg-This is the first I've heard of this process. I can see how it might help the potential borrower with a thin file, but after pre-qualifying, wouldn't the lender revert back to the "real' FICO and reject the file? Or am I all wet?

August 27, 2012 08:08 PM
Rainmaker
247,106
Greg Cook
Mortgage Consultant NMLS ID# 283159
Platinum Home Mortgage

Wayne, thanks for stopping by. Lenders (as far as I know) haven't implemented the new scoring model yet. So we'll have to wait and see how that works out.

There will also have to be integration with DU to be effective in the pre-qual process, so we'll have to see hwo this plays out.

August 28, 2012 06:34 AM
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Rainmaker
247,106

Greg Cook

Mortgage Consultant NMLS ID# 283159
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