Lending Guidelines
ByLending Guidelines
As of March 29, 2007. These guidelines will update monthly.
You may have heard the buzz about changes in the mortgage industry. Due to changes in the housing market, lenders are updating their lending guidelines to better protect borrowers. Here’s a chart to help you figure out how the new standards affect you.
Please note that these are general guidelines and may not apply to all lenders. Even if you meet the down payment and credit score requirements detailed below, you are not guaranteed to get loan offers.
|
Down Payment Required |
||
|
Credit Score |
Current |
Old |
|
680+ |
None |
None |
|
660-679 |
None |
None |
|
620-659 |
5% |
None |
|
580-619 |
10% |
None |
|
560-579 |
15% |
10% |
|
540-559 |
20% |
10% |
|
Down Payment Required |
||
|
Credit Score |
Current |
Old |
|
680+ |
5% |
None |
|
660-679 |
10% |
None |
|
620-659 |
10% |
None |
|
580-619 |
15% |
10% |
|
560-579 |
20% |
10% |
|
540-559 |
25% |
15% |
|
Maximum CLTV Allowed |
||
|
Credit Score |
Current |
Old |
|
680+ |
100% |
100% |
|
660-679 |
100% |
100% |
|
620-659 |
95% |
100% |
|
580-619 |
90% |
100% |
|
560-579 |
85% |
90% |
|
540-559 |
80% |
90% |
|
Maximum CLTV Allowed |
||
|
Credit Score |
Current |
Old |
|
680+ |
95% |
100% |
|
660-679 |
90% |
100% |
|
620-659 |
90% |
100% |
|
580-619 |
85% |
90% |
|
560-579 |
80% |
90% |
|
540-559 |
75% |
85% |
|
Maximum CLTV Allowed |
||
|
Credit Score |
Current |
Old |
|
680+ |
100% |
100% |
|
660-679 |
95% |
100% |
|
620-659 |
90% |
95% |
|
580-619 |
90% |
100% |
|
560-579 |
85% |
90% |
|
540-559 |
80% |
90% |
|
Maximum CLTV Allowed |
||
|
Credit Score |
Current |
Old |
|
680+ |
90% |
90% |
|
660-679 |
90% |
90% |
|
620-659 |
75% |
80% |
|
580-619 |
85% |
90% |
|
560-579 |
80% |
90% |
|
540-559 |
75% |
85% |
|
Maximum CLTV Allowed |
||
|
Credit Score |
Current |
Old |
|
680+ |
125% |
125% |
|
660-679 |
100% |
100% |
|
620-659 |
90% |
95% |
|
580-619 |
- |
- |
|
560-579 |
- |
- |
|
540-559 |
- |
- |
|
Maximum CLTV Allowed |
||
|
Credit Score |
Current |
Old |
|
680+ |
95% |
100% |
|
660-679 |
90% |
95% |
|
620-659 |
- |
90% |
|
580-619 |
- |
- |
|
560-579 |
- |
- |
|
540-559 |
- |
- |
Notes and definitions:
CLTV is the Combined Loan-to-Value ratio, or the combined amount of all loans on a property divided by the appraised value of the property.
Stated income is when employment is stated and verbally verified, and income is stated but not verified.
Credit scores below 620 are considered subprime.
All information is based on owner-occupied homes.