Kentucky Mortgage Approval With No Credit Score FHA, VA, USDA, Conventional

Kentucky 2025

Kentucky Mortgage Approval With No Credit Score

A simple plan for FHA, VA, USDA, and Conventional loans. If you have no credit score, you can still buy a home in Kentucky—here is how it works.

Apply Now (502) 905‑3708 Email Joel

Author: Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA · NMLS #57916 · Company NMLS #1738461 · Louisville, KY

On this page:

• Why this guide matters
• Quick Start Guide
• Program Comparison
• VA with no score

• FHA with no score
• Conventional with no score
• USDA with no score
• Non-traditional credit

• Documents checklist
• FAQs
• Why trust us
• Get pre-approved

Why this guide matters

You can buy a home in Kentucky even if you do not have a credit score. I help first‑time buyers with no scores every week. This site has deep how‑to guides on Kentucky FHA, VA, USDA, and Conventional loans. That gives you simple steps, clear rules, and fewer surprises. In short: this is our specialty, and we do it a lot.

See related guides: Kentucky FHA Loans · Kentucky VA Loans · USDA Rural Housing Kentucky · KHC Down Payment Assistance

Quick Start: What to do first

1

Map your program

• Use VA if you are eligible (often $0 down).
• Use USDA if the home is in an eligible rural area (often $0 down).
• Use FHA if you need flexible credit rules.
• Use Conventional when AUS approves, often with a co‑borrower who has a score.

2

Prove your payment history

Gather 12 months of on‑time payments for rent and 2–3 other bills (utilities, phone, insurance, daycare). Bank statements, invoices, or letters from the company work.

Why Kentucky Homebuyers Trust Us

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Program snapshot (side‑by‑side)

Each program has unique requirements for no-score borrowers. The right choice depends on your specific situation.

Program	Purchases vs. Refis	Approval Method	DTI Rules	Tradelines & Rent	Notes
VA	Purchases only when no score is involved	Manual underwriting allowed up to 50% DTI with residual income. If DTI > 41%, meet 120% of VA residual income.	Up to 50% with strong residual income	3 non‑traditional tradelines with 12 months on‑time history. Rent‑free letter if living rent‑free.	No formal loan cap with full entitlement; $0 down for eligible Veterans.
FHA	Purchases only when a borrower has no score	Even if AUS is Approve/Eligible, downgrade to manual when any borrower has no score.	All borrowers no score: 31/43. If one borrower has ≥580 and the other no score: up to 40/50 with compensating factors.	3 non‑traditional tradelines per no‑score borrower; rent‑free letter if applicable.	HUD REO $100 down, escrow holdbacks, 203(h) disaster, Condo Single‑Unit Approvals allowed.
Conventional	Purchases and refis as AUS permits	No‑score co‑borrowers allowed with DU/LPA Approve/Accept. Run both and follow the stronger findings.	Per AUS	If scored borrower provides >50% of income: no extra NTCs. If no‑score borrower provides >50%: need 2 NTCs + 12‑month rent.	Pricing may be based on the scored borrower's profile (e.g., 740) when paired with a no‑score co‑borrower.
USDA	Purchases	Run GUS. Enter 100 as the credit score for a no‑score borrower.	Typical program ratios 29/41 unless GUS allows otherwise.	If 12‑month rent is verified: add 1 extra NTC. If no rent: provide 3 NTCs.	$0 down for eligible rural properties. Check USDA property eligibility.

VA with no score

If your total DTI is above 41%, you must meet at least 120% of the VA residual‑income rule for your family size and region.

What to expect

• Manual underwriting allowed up to 50% DTI with strong residual income.
• 3 non‑traditional tradelines with 12 month on‑time history for any no‑score borrower.
• Rent‑free letter if you live rent‑free.
• $0 down available for eligible Veterans with entitlement.

Helpful link: VA Home Loan Program

FHA with no score

What to expect

• When any borrower has no score, we must manually underwrite, even if AUS says Approve/Eligible.
• DTI caps: 31/43 when all borrowers have no score.
• If one borrower has a 580+ score and the other has no score, DTI can stretch to 40/50 with strong compensating factors.
• 3 non‑traditional tradelines with 12 months of on‑time payments; rent‑free letter when applicable.
• Special cases allowed: HUD REO $100 down, escrow holdbacks, 203(h) disaster relief, Condo Single‑Unit Approvals.

Helpful link: FHA for Homebuyers

Conventional with no score

What to expect

• We run DU (Fannie Mae) and LPA (Freddie Mac). If we receive Approve/Accept findings, a no‑score co‑borrower is allowed.
• Pricing may be based on the scored borrower's credit when paired with a no‑score co‑borrower.
• If the scored borrower provides more than 50% of qualifying income: no extra NTCs needed.
• If the no‑score borrower provides more than 50%: provide 2 non‑traditional tradelines plus 12‑month rent verification.

Helpful links: Fannie Mae Single‑Family · Freddie Mac Single‑Family

USDA with no score

What to expect

• We run GUS. For a borrower with no score, we enter 100 as the score value in the system.
• Typical USDA ratios are 29/41, but GUS may allow exceptions.
• If 12‑month rent is verified: provide rent + 1 extra non‑traditional tradeline. If no rent: provide 3 non‑traditional tradelines.
• $0 down for eligible rural properties. Check your address on the USDA map.

Helpful link: USDA Eligibility

Non‑traditional credit examples

Commonly Accepted

• Rent or mortgage (VOR)
• Utilities: electric, water, gas
• Phone or internet
• Auto or renters insurance

Sometimes Accepted

• Daycare or tuition
• Streaming or subscription bills
• Medical payment plans
• Gym membership with monthly billing

Tip: we need 12 straight months of on‑time payments and a way to verify them.

Documents checklist

Identity & income

• Driver's license and Social Security number
• 30 days of pay stubs and last 2 years W‑2s
• Last 2 months of bank statements
• Proof of other income (if any)

Non‑traditional credit

• 12‑month rent verification or rent‑free letter
• 2–3 other bills with 12 months of on‑time payments
• Invoices or letters from each company
• Matching bank statements when possible

FAQs

Is this only for first‑time buyers?

No. It fits many buyers who lack a traditional score. Each program has extra rules. We will confirm what works for you.

Will building a quick credit score help?

Sometimes, but not always. Opening a new card right before buying a home can cause delays or lower your approval odds. Ask first.

Can I use down payment help?

Often yes. Many Kentucky buyers pair these loans with KHC Down Payment Assistance. We will review your eligibility.

Ready to get pre‑approved?

We specialize in no‑score mortgage approvals in Kentucky across FHA, VA, USDA, and Conventional. I will map your plan, list the exact documents you need, and show you the payment range you can expect.

Start Your Application Call (502) 905‑3708 Email Joel

Kentucky no credit score FHA VA USDA Conventional First‑time homebuyer

Equal Housing Lender. EVO Mortgage Company NMLS #1738461 |Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA Joel Lobb NMLS #57916. Not a commitment to lend. All loans subject to credit approval, property approval, program availability, and change without notice. AUS findings and agency handbooks (HUD/FHA, VA, USDA, Fannie Mae, Freddie Mac) – as well as investor overlays – control. Some features (such as no‑score refinances) may be unavailable. Always verify property eligibility and income limits for USDA and KHC programs.

Helpful official resources: HUD/FHA · VA · USDA · Fannie Mae · Freddie Mac

Kentucky 2025

Kentucky Mortgage Approval With No Credit Score

A simple plan for FHA, VA, USDA, and Conventional loans. If you have no credit score, you can still buy a home in Kentucky—here is how it works.

📄 Apply Now 📞 (502) 905-3708 ✉️ Email Joel

Author: Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA · NMLS #57916 · Company NMLS #1738461 · Louisville, KY Equal Housing Lender

This is not a commitment to lend. All loans subject to credit approval, underwriting, property eligibility, and program guidelines. Not affiliated with HUD, VA, USDA, Fannie Mae, or Freddie Mac. | Disclosures

Kentucky Mortgage Loan Credit Score Requirements 2025 | FHA, VA, USDA, Conventional, KHC

Kentucky Mortgage Loan Credit Score Requirements 2025

One of the first questions Kentucky homebuyers ask is: “What credit score do I need to qualify for a mortgage?” The answer depends on which program you use—FHA, VA, USDA, Conventional, or even the Kentucky Housing Corporation (KHC) Down Payment Assistance program.

This guide breaks down each program’s **credit score requirements**, what makes them different, and how you can qualify—even if your credit isn’t perfect.

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USDA Loan Requirements in Kentucky (2025)

Buying a home in rural or small-town Kentucky is easier with a USDA loan. This program offers **zero down payment financing** and flexible credit requirements, making it one of the best-kept secrets for first-time buyers.

• Minimum Score: 580+ accepted
• Preferred Score: 640 for smoother approvals
• Down Payment: 0% (no money down)
• Other Requirements: Home must be in a USDA-eligible rural area, and income limits apply

See If You Qualify for a USDA Loan in Kentucky

Contact Joel Lobb today for a free USDA pre-qualification and property eligibility review.

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FHA Loan Requirements in Kentucky (2025)

If your credit isn’t perfect, FHA loans may be your best option. Backed by the Federal Housing Administration, they’re designed for borrowers who may not qualify for Conventional financing.

• Minimum Score: 500 with 10% down; 580+ with 3.5% down
• Lender Overlays: Many lenders prefer 620+ even though FHA allows lower
• Best For: First-time buyers, credit-challenged borrowers

Start Your FHA Loan Pre-Approval

See how much home you can afford in Kentucky with flexible FHA financing.

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VA Loan Requirements in Kentucky (2025)

For veterans, active-duty service members, and eligible spouses, the VA loan program is unmatched. It offers **zero down, no PMI, and no official minimum credit score**.

• Minimum Score: No official minimum
• Preferred Score: 620+ for best approval odds
• Benefit: 0% down payment and no monthly mortgage insurance

Kentucky VA Home Loans

Thank you for your service. Let’s explore your no-down-payment VA loan options in 2025.

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Conventional Loan Requirements in Kentucky (2025)

Conventional loans remain the go-to option for many Kentucky buyers with stronger credit. Backed by Fannie Mae and Freddie Mac, they reward higher credit scores with better rates and lower PMI.

• Minimum Score: 620
• Preferred Score: 760+ for best rates
• Down Payment: 3-5%+ for first-time buyers

Check Your Conventional Loan Options

With just 3-5% down, you may qualify for a Conventional loan in Kentucky today.

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KHC Down Payment Assistance (2025)

Saving for a down payment is the biggest barrier for many homebuyers. The Kentucky Housing Corporation (KHC) is helping with a **temporary boost to $12,500 in assistance** (up from $10,000), available until November 30, 2025.

• Minimum Score: 620
• Assistance: Up to $12,500 for down payment and closing costs
• Other Requirements: Income and purchase price limits apply; must be used with FHA, VA, USDA, or Conventional first mortgage

Use KHC’s $12,500 Down Payment Assistance

Ask me how to combine KHC assistance with FHA, VA, USDA, or Conventional loans to save upfront costs.

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Kentucky Mortgage Loan Credit Score Comparison (2025)

Loan Type	Minimum Score	Preferred Score	Down Payment
USDA Loan	580+	640	0%
FHA Loan	500 / 580+	620+	10% / 3.5%
VA Loan	No Minimum	620	0%
Conventional	620	680+	3%+
KHC Assistance	620	640+	0% (with DPA)

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Frequently Asked Questions

Most lenders require at least 580 for a USDA loan in Kentucky, but 640 is preferred for smoother approvals.

FHA loans allow 500 with 10% down or 580 with 3.5% down. Most Kentucky lenders prefer 620 or higher.

The VA does not set a minimum score. Most lenders accept 580+, with 620 preferred for stronger approvals.

Conventional loans require at least 620. Higher scores (680+) qualify for better rates and lower PMI costs.

Yes. FHA, USDA, and KHC programs all offer options for borrowers with lower credit scores. With the right strategy, you can still qualify.

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Final Thoughts: Credit Score & Mortgage Approval in Kentucky

Each mortgage program in Kentucky has different credit score requirements, but that doesn’t mean you can’t qualify if your score isn’t perfect. With USDA and VA offering zero down, FHA giving credit-challenged buyers a path forward, and KHC adding down payment help, there’s a solution for nearly every buyer in 2025.

Start Your Kentucky Mortgage Pre-Approval Today

Contact Joel Lobb for a free pre-qualification, credit review, and loan comparison. Let’s find the program that works for you.

Joel Lobb – Senior Loan Officer, EVO Mortgage
NMLS #57916 | Company NMLS #1738461
📞 (502) 905-3708 | ✉️ kentuckyloan@gmail.com

Equal Housing Lender | Not endorsed by any government agency. All loans subject to approval and availability.

What credit score do mortgage lenders use?

Which FICO Score Generation Do Mortgage Lenders Use?

The best-known credit scores are going to fall under either the FICO or VantageScore brands. There are multiple generations of each score brand, as every few years, the score developers create newer versions. So, for example, there’s a VantageScore 1.0, 2.0, 3.0, and 4.0.

In most lending environments outside of mortgages, it’s hard to know which specific credit score a lender will use to evaluate your application. And, even if you knew your lender used a FICO Score or a VantageScore credit score, you still would not know which generation of the score it is using.

For example, you may apply for an auto loan with one lender that checks your FICO Auto Score 8 based on your Experian credit report. Yet, if you apply for financing with a different auto lender, it may opt to check your VantageScore 3.0 score based on TransUnion data.

The only way to know for sure is to ask the lender which credit report and which credit score version it plans to check, but that isn’t a guarantee that they’ll tell you.

The mortgage industry is different. Because of the aforementioned FHFA mandate, mortgage lenders must use the following versions of FICO’s scoring models:

FICO Model	Description
FICO 9	Newest version. Not widely used.
FICO 8	Most common. Used for Auto and Bankcard lending.
FICO 5	Used by mortgage lenders. Built on data from Equifax.
FICO 4	Used by mortgage lenders. Built on data from TransUnion.
FICO 2	Used by mortgage lenders. Built on data from Experian.

• Experian: FICO Score 2, sometimes referred to as FICO V2 or FICO-II
• TransUnion: FICO Score 4, sometimes referred to as FICO Classic 04
• Equifax: FICO Score 5, sometimes referred to as BEACON 5.0

Why Do Mortgage Lenders Use Older FICO Scores?

The reason mortgage lenders use older FICO Scores is because they don’t have a choice. They are essentially forced to use them.

Unlike every other industry, mortgage lenders don’t have the flexibility to choose the scoring model brand or generation they want to use. Mortgage lenders must follow the direction of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, as it pertains to scoring models.

The GSEs play an important role in mortgage lending. These publicly traded companies buy mortgages from banks, bundle them together, and sell them to investors. This frees up funds so that banks can offer new mortgages to additional homebuyers.

For a bank to sell a mortgage to Fannie Mae or Freddie Mac, the loan has to meet certain guidelines. Some of these guidelines require borrowers to have a minimum credit score under specific FICO Score generations.

If a lender uses a different scoring model other than what the GSEs approve when it underwrites a mortgage, it probably won’t be able to sell that mortgage after it issues the loan. This limits the lender’s ability to write new loans because it will have less money available to lend to future borrowers

When applying for a mortgage in Kentucky, it's crucial to understand that lenders utilize specific FICO® score models tailored for mortgage underwriting. These models differ from the scores commonly accessed through consumer credit monitoring services.

FICO® Score Models Used by Kentucky Mortgage Lenders

Mortgage lenders in Kentucky, consistent with industry standards, rely on the following FICO® score versions: mylouisvillekentuckymortgage.com

• FICO® Score 2 – Derived from Experian data

• FICO® Score 4 – Based on TransUnion data

• FICO® Score 5 – Utilizes Equifax dataI  nvestopedia Direct Mortgage Loans

These are collectively known as the "classic" FICO® models and are mandated for use in underwriting loans backed by entities such as Fannie Mae, Freddie Mac, FHA, VA, and USDA

.mylouisvillekentuckymortgage.com+1Louisville Kentucky Mortgage Loans+1

Importance of the Middle Credit Score

Lenders typically obtain a tri-merge credit report, encompassing scores from all three major bureaus. The middle score—the one that falls between the highest and lowest—is used to assess your creditworthiness. For joint applications, the lower middle score between co-borrowers is considered.  

Investopedia+2Louisville Kentucky Mortgage Loans+2kyfirsttimehomebuyer.wordpress.com+2

Discrepancies Between Consumer and Mortgage Credit Scores

It's common for consumers to notice differences between the credit scores they access through services like Credit Karma and those used by mortgage lenders. This is because consumer platforms often provide scores based on models like FICO® 8 or VantageScore 3.0, which are not utilized in mortgage lending. These consumer scores can be 20–40 points higher or lower than the mortgage-specific scores

Strategies to Enhance Your Mortgage Credit Score

To improve your mortgage-specific FICO® scores:

• Maintain Low Credit Utilization: Aim to keep your credit card balances below 30% of your credit limits.

• Limit New Credit Inquiries: Avoid applying for new credit lines 30–60 days before seeking mortgage pre-approval.

• Address Inaccuracies: Dispute any incorrect information on your credit reports directly with the credit bureaus.

• Prioritize Paying Down Revolving Debt: Reducing balances on credit cards can positively impact your scores.

Link to article below

https://www.badcredit.org/how-to/which-fico-score-do-mortgage-lenders-use/

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Disputes on Credit Report and Kentucky Mortgage Lo...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Disputes on Credit Report and Kentucky Mortgage Lo...: 

Applying for a Kentucky Mortgage Soon? Don't Dispute that Account       Sounds counterintuitive, I'm sure ...       But until you...

 Got Dispute Comments on Your Credit Report? 

If you've disputed any accounts in the past, chances are your credit report still has dispute comments listed. That might seem harmless—but if you're applying for a mortgage, those comments could delay or even block your loan approval.

 Here’s what you can do:

1. Call each credit bureau (numbers on the graphic).

2. Ask to remove any dispute comments.

3. Verify they’re gone by pulling a fresh consumer credit report.

4. Follow up within 72 hours to confirm it’s been done.

Pro Tip: Do this before your lender pulls your credit. It could save time, stress, and keep your home loan on track.

If you’re not sure where to start, drop a comment or shoot me a message. I’m here to help walk you through the process!

#CreditTips #MortgageReady #HomeLoanHelp #KentuckyMortgage #JoelLobb #CreditRepair #HomebuyerTips #FHA #VA #USDA #KHC #CreditScoreMatters #NMLS57916 #EqualHousingLender

 

What Mortgage Loan Is Best for My Credit Score in Kentucky?

One of the most common questions I get as a Kentucky mortgage broker is: “Which home loan can I qualify for based on my credit score?” Whether you're a first-time homebuyer or simply exploring your options, your credit score plays a critical role in which loan programs you’re eligible for. Here’s a simple breakdown that compares FHA, VA, USDA, and Conventional loans.

🏦 Loan Options by Credit Score

Use the infographic below to see where your credit score aligns with each loan program:

• FHA Loan: Available for scores as low as 500 (with 10% down). Most lenders require at least 580 for 3.5% down.
• Conventional Loan: Typically requires 620+ with 3-5

6 Tips to Boost Your Credit Score for Kentucky Mortgage Loans (FHA, VA, USDA, KHC)

6 Tips to Boost Your Credit Score for Kentucky Mortgage Loans (FHA, VA, USDA, KHC)

If you’re looking to buy a home in Kentucky, having a solid credit score is essential for qualifying for popular mortgage programs like FHA, VA, USDA, or KHC loans. Here are six actionable tips to improve your credit score and increase your chances of getting approved for your dream home loan.

1. Pay Your Monthly Bills on Time

Here are six tips for improving your credit score for a fresh financial start 

1. Pay Your Monthly Bills on Time
Paying monthly bills is a necessary chore that has a definite effect on your credit score. According to the FICO scoring model, your payments account for as much as 35 percent of your total score. Create reminders for due dates or establish a calendar for yourself to ensure you get everything paid on time.

2. Reduce Your Debts
Got credit card debt? Start paying it off now. Part of your credit score is based on the amount of available credit you have, known as your credit utilization ratio. So if you're carrying high balances, you'll want to lower them as soon as possible. Create a personal budget with a goal of reducing your spending so that it's lower than your income. Then, use any monthly surplus for your credit card debts until they're gone for good.

3. Limit Credit Inquiries
Looking for a new apartment? What about a mortgage? In either situation, try and group your applications together as much as possible. Applications for new lines of credit will generate a "hard pull" on your credit, and having too many of them in a short period of time can lower your score. However, credit reporting agencies usually consider a group of applications within a short period of time as one pull, as long as they're in the same category.

Similarly, limit yourself to opening up no more than one or two credit cards per year, which also generate hard pulls. Even if you get a ton of offers in the mail for stellar sign-up bonuses, they're likely to be offset by the damage to your credit. FICO reports that new credit and credit inquiries account for 10 percent of your total score.

4. Don't Cancel Old Cards
Have a card you don't use anymore? Don't close it. This can negatively affect your score as it lowers your amount of available credit. Instead, use it about once per month and don't forget to pay the bills in full, and on time.

5. Request Credit Limit Increase
If you only have one card and you're constantly approaching your spending limit, call the bank and ask for an increase in your credit line. This will raise the amount of available credit, which will eventually improve your score.

6. Take Care of Late Payments Before They Hit Your Score
If you do happen to miss a payment, contact the card issuer immediately. If you have good history built up, the company may agree to not report your late payment. Even if you can't avoid a late-payment fee, be sure to get your account up to date as soon as possible so you can limit the damage.
Your credit score is yours to own. It reflects your financial history and helps lenders predict how you will manage your finances in the future. Due to the lingering effects of credit, you don't want to waste any time to improve your credit.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

The Credit Report and Credit Scores Used For A Kentucky Mortgage Loan Approval FHA, USDA, Fannie Mae and VA

Understanding Credit Scores for Kentucky Mortgage Loan Approval

Why do some mortgage lenders require a certain credit score whereas other mortgage lenders may not?

One Word Mortgage Overlays. Some lenders will institute a higher credit score than the minimum below to lessen their risk of having to buy the loan back from the government agencies if they get too many mortgage defaults. In order to protect their lending portfolio and hedging their risk, they will require say a 640 credit score or higher for a FHA loan, whereas the guidelines clearly state you can do a FHA loan with a minimum credit score of 580 To understand mortgage overlays, it helps to have a foundation of how the mortgage approval process works. Mortgage lenders always have underwriting guidelines—standards to determine the amount and terms you qualify for.

Credit Score Minimum guidelines are typically set based on the mortgage program, e.g., FHA, VA, or USDA. FHA, --

What score does the Mortgage Lender Use? Why may it be different than the one you are seeing?

The reason mortgage lenders use older FICO Scores is because they don’t have a choice. They are essentially forced to use them.

For a bank to sell a mortgage to Fannie Mae or Freddie Mac, FHA VA, USDA, Etc, the loan has to meet certain guidelines. Some of these guidelines require borrowers to have a minimum credit score under specific FICO Score generations.

If you’re planning to apply for a mortgage, be aware that the credit score you see on your application might differ slightly from the one you’re used to.

It might even be different than what comes up when you monitor your credit, or even when you apply for a car loan.

Banks use a slightly different credit score model when evaluating mortgage applicants. Below, we go over what you need to know about credit scores you’re looking to buy a home.

The scoring model used in mortgage applications

While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage:

FICO® Score 2 (Experian)
FICO® Score 5 (Equifax)
FICO® Score 4 (TransUnion)

As you can see, each of the three main credit bureaus (Equifax, Experian and TransUnion) use a slightly different version of the industry-specific FICO Score. That’s because FICO tweaks and tailors its scoring model to best predict the creditworthiness for different industries and bureaus. You’re still evaluated on the same core factors (payment history, credit use, credit mix and age of your accounts), but the categories are weighed a little bit differently.

The FICO 8 model is known for being more critical of high balances on revolving credit lines. Since revolving credit is less of a factor when it comes to mortgages, the FICO 2, 4 and 5 models, which put less emphasis on credit utilization, have proven to be reliable when evaluating good candidates for a mortgage.

Mortgage lenders pull all three reports, from all three bureaus, but they only use one when making their final decision.

“A bank will use all three bureaus,”--- “It’s called a tri-merge.”

If all three of your scores are the same, then their choice is simple. But what if your scores are different?

And if you are applying for a mortgage with another person, such as your spouse or partner, each applicant’s FICO 2, 4 and 5 scores are pulled. The bank identifies the median score for both parties, then uses the lowest of the final two.

Contact Joel Lobb for Expert Mortgage Advice

Joel Lobb is an experienced Mortgage Loan Officer , Inc. specializing in helping Kentucky homebuyers navigate credit and mortgage processes.

Contact Information:

• Text/Call: 502-905-3708
• Email: kentuckyloan@gmail.com
• Website: www.mylouisvillekentuckymortgage.com

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Disclaimer: The information provided is for educational purposes and does not guarantee approval or represent underwriting guidelines. Always consult with your lender for personalized advice.

If you'd like any adjustments or additional details, let me know!

NMLS 57916  | 

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).