Understanding How FICO score is calculated for DSCR Loans (+General Mortgage Loans)

Robin SimonPoster

#1 Private Lending & Conventional Mortgage Advice Contributor

Lender
Austin, TX

Posted September 05, 2026 09:03

FICO score is determined by assessing credit data in the following five weighted categories: payment history (35%), credit utilization (30%), length of borrower credit history (15%), types of credit in use (10%) and new credit accounts (10%). While these aspects and details are also used in the qualification and underwriting process for DSCR Loans (like specific rules around number of late payments on mortgage loans or ages and types of specific charge-offs and collections), the credit score number itself plays a large role in and of itself.

Chart: Understanding How FICO score is calculated for DSCR Loans

Category	% of Score	What It Means
Payment History	35%	This is the most important factor in your credit score. It reflects whether credit accounts on time have been paid on time in the past, including credit cards, mortgages, auto loans and more. Late payments, delinquencies and defaults will significantly drag down credit score.
Credit Utilization	30%	This refers to how much of available revolving credit is being used at any given time. Using a high percentage, especially above 30%, can signal elevated risk to lenders. Keeping balances low compared to limits is one of the fastest ways to improve a credit score.
Length of Credit History	15%	The longer accounts have been open, the better for credit scores. This category considers the age of oldest and newest accounts, as well as the average age of all your credit. A long and established history of responsible credit usage signals experience managing debt over time. Note, closing old accounts unnecessarily can shorten average credit age and harm credit scores through this credit category.
Types of Credit	10%	A diverse mix of types of credit accounts can also impact score positively, with more types of credit, the better. This includes revolving credit (like credit cards) and installment loans (like auto loans, student loans or mortgages). Having only one type may limit a credit score, while a healthy mix suggests more complete credit experience.
New Credit	10%	This measures how many new accounts have been opened recently and how many times lenders have recently “pulled” credit. Too many new inquiries or accounts in a short period can look risky, especially for thin credit files. That said, one or two recent accounts won’t hurt much if the rest of the credit profile is strong.

One important nuance that real estate investors using DSCR loans (or any mortgage loan for real estate) is that credit scores used by mortgage lenders are different than normal consumer credit reports. These mortgage lender credit scores are weighted a bit more heavily toward real estate credit, taking things like other mortgage debt more into account. While DSCR Lenders are looking at an overall history and track record of paying debts, it is especially important to see responsible and reliable payment of mortgage loans in particular.