Slow credit, no credit, all applications approved.” Yes, but on what terms?
Loan terms and rates are determined by credit scores. Following is a guideline table for loan % to value on sub-prime conventional loans:
| Credit scores | Loan % to Value | Down payment required |
| 600-620 | 100% loan to value | No down payment |
| 560-580 | 90-95% loan to value | 5-10% down payment |
| 550-560 | 85-90% loan to value | 10-15% down payment |
| 535-550 | 80-85% loan to value | 15-20% down payment |
| 500-535 | 80% loan to value | 20% down payment |
In addition to demand for increased down payments, a lower credit score dictates higher interest rates. Bad credit can cost you thousands of dollars over the life of a home mortgage loan. That is an unfortunate reality for the majority of American consumers.
Begin an effort to repair and rebuild your credit report. If you don’t have time, or don’t know where to start, contact RMCN Credit Services for assistance. We know the laws inside-and-out and can get your inaccuracies, as well as certain other items, removed. By law, the credit bureaus must provide adequate proof of their records or remove disputed items. We hold the credit bureaus legally responsible for what they list on your credit report, thereby improving your credit score.
