MortgageBase Credit and Income Criteria:

Credit:

As technology moves forward, so too does the credit and lending industry. Credit Reporting Agencies issue everyone with a credit history a "credit score". This credit score must exceed 620 to obtain a loan from a wholesale lender that submits rates to MortgageBase (unless these credit problems were caused by extenuating circumstances such as an unforseen medical emergency).

* Note: Exceeding a score of 620 does not guarantee loan approval.

Your credit score is based on a number of factors and can change daily. Some of these factors include the number of late payments in the past, number of accounts open, number of accounts with high balances relative to their credit limit, foreclosures or bankruptcies, or even how many times that you have applied for credit recently. For a more detailed description of how credit scoring can affect you, visit the FHLMC (Freddie Mac) credit scoring page. (Use your back button to return to MortgageBase.)

Some basic guidelines that will help you determine if your credit is adequate for a MortgageBase lender follow:

• You have not had more than one mortgage late payment in the last 12 months, or more than two in the last 24 months.
• You have not had more than two late payments on any revolving credit (credit card or line of credit loan) in the last 12 months, or more than three in the last 24 months.
• You have not declared bankruptcy or had a property foreclosed on in the last 7 years.
• You have not had any collection accounts or judgements due to non-payment of obligations in the last 24 months.

Obviously, each individuals credit must be analyzed on a case by case basis. If you have had credit issues that were caused by circumstances beyond your control, the above criteria may not apply.

Income:

Income requirements can be broken down into two separate categories - Salaried or Hourly Wage Earners v.s. Self Employed or Commissioned Borrowers

Salaried or Hourly Wage Earners:

A two year history in the same line of work is required unless the applicant has recently completed schooling in the field and it is a professional field of work. The current salary or hourly wage of the applicant will be used to determine the current income amount. If the hourly workers weekly hours are not consistent, an average of the hours worked per week for the last two years will be used to determine the estimate of future earnings.

Self Employed or Commissioned Borrowers:

A two year earnings history in the same business or line of business is required. Self employed borrowers can roughly estimate the income that a mortgage lender will earn by adding any depreciation from any of the schedules on their tax returns for the last two years to the adjusted gross income and subtracting any non-reimbursed expenses and unusual capital gains or interest income (which has not been consistent for the last two years).

Note - this is just an estimate, and many other factors may need to be considered depending on the situation.

In each case, other factors may apply.