Updated 2 days ago on . Most recent reply
Fico used dscr
What fico score do dscr lenders use? My mortgage fico is 730s and reguar fico is around 800.
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All Banks and lenders will pull your credit (hard pull required) and they use the "Middle score' out of the High. Low and middle. You have (3) bureaus Transunion, Equifax and Experian and should have (3) scores but not always depending on number of accounts reporting to credit.
Most people tell a bank or lender they have an 800, its because they see on one of their accounts that offer free score like checking, or one of your credit cards. That is a "Big" mistake because when we as Banks pull credit it will never be exactly what you see on the consumer (free sites). It's because those are not for the purpose of offering or approving credit. A bank lof lender must pull your (3) scores through a credited company like CIS, Credit Plus or another agency.
DSCR lenders and programs all vary but in most cases you will need a 680 minimum to get an 80% LTV approval for a purchase. 720 and above is required to 85% or to receive a good low rate without having to pay excessive points or rate buydowns (Discount points).
On average the DSCR loans require a minimum of 15% down for single family and 20% for 2-4 units. If you want to know the credit score sweet spot it tends to be 760+ that favors low rates and better options. After that it relies mostly on DSCR ratio of 1.00 or better although (No ratio and .75% ratio programs exist).
Before you dive into your first DSCR purchase or refinance talk to a seasoned exert on both the Realtor and Banker side to avoid lost time and money. There are a few things that can cause multiple issues and knowing how to avoid them or attack them up front saves you the headaches.
Feel free to reach out via email or message if you have any questions and check out my profile.