Fico question

Hi all,

I just checked my credit scores. Transunion and equifax show FICO of 628 and experian show 541. I know these are extremely low mainly due to maxed out cards used to pay for graduate school. Which scores would a lender use if I apply for a mortgage , which I plan to do in a few months. Also, which scores would a HML probably use for a 65-70% LTV 6 month interest only loan.



From what I understand, lenders will use an average of the 3 scores but I could be wrong. regardless of your score however, you can still get a loan. The score will mostly determine the interest on the loan and probably the LTV. As far as HML, it is usually based on the property. Some will charge more for low scores but usually they will not turn you down. Aim for a year not 6 months though.

Lenders almost/always use the middle score. In your case, you have 2 identical scores and 1 that is 541 – the lesser of the two would be used.

However, there is light for you, there are niche lenders that can go either off of high score, average score, or no score.


Sean is right. The lender will take away the high and low and leave the “mid” score.

There are a multitude of B/C Subprime lenders that will do 100% financing with that mid.

Please remember that credit score is not the only indicator a lender looks at. They will also review your Debt to Income (DTI), income, job history, and other items to ensure that you are a good risk.

For 100% financing to buy and flip properties a hml may be best. They are great for buying 50-60% below market value. Especially if you are dealing with a loan amount under $100K. With lower loan amounts the cost fo a niche loan could be close to that of the hml. Plus the hml will not care about the credit score and no income or assets will be verified. A much quicker process. These loans are short term so you will need to have a niche lender lined up to refinance the property if you want to keep it long term.