Your FICO score, which is an acronym for Fair Isaac Corporation (the first credit bureau-based credit scoring system, which was introduced in the mid-1980s and didn’t get “big” until 1995), is important when it comes to buying a house – especially if you’re buying with bad credit. Here’s why.
Your FICO Score and Interest Rates
The higher your FICO score after a bankruptcy or foreclosure, the more competitive rates you’ll get. Typically, if you have the following FICO score, this is how much extra you’ll pay over the prevailing rate:
- 600 – 640: + 1.625%
- 560 – 580: + 2.875%
- 540 – 559: + 3.425%
- 500 – 540: + 3.875%
- Under 500: + 6.25%
With numbers like these, it makes sense to do whatever you can to get your FICO score up before you apply for a loan. These extra interest percentages occur after you’ve waited to buy a home with poor credit, so use that time to build your score as best you can.
Are You Buying a Home in Irvine?
If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for your needs (and your budget).
Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.
In the meantime, check out our:
- Great Park homes for sale
- Stonegate homes for sale
- Rancho San Joaquin homes for sale
- Westpark I homes for sale
- Hoag Hospital area homes for sale
- Lido area homes for sale
- Newport Coast homes for sale
- West Newport homes for sale