Credit Requirements

• Minimum tradelines

  • A cumulative total (all borrowers combined) four tradelines is required with a minimum rating of 24 months.

  • The primary wage earner must have a minimum of three open tradelines with a minimum rating of 12 months.

  • At least one of the qualifying tradelines must be reported in the last 12 months.

  • Derogatory/deferred tradelines do not count.

• Representative Score:

  • Minimum 700-719, 720+ provides better options.

  • Middle of three scores or lower or two scores used.

  • Lowest score among all borrowers used.

  • Borrowers with only one score are ineligible.

• Mortgage and rental history: No delinquencies permitted in the past 12 months.

• Tax liens, judgments, collections, and charge-offs: Proof paid or pay at closing.

• Credit Restoration: Allowed, must provide updated credit report.

• Bankruptcies, consumer credit counseling, and foreclosures:

  • 4-year waiting period is required from the completion date of the deed-in-lieu, foreclosure, pre-foreclosure sale (short-sale), or charge-off as reported on the credit report or other documents provided by the borrower.

  • 4-year waiting period is required for Chapter 7 and Chapter 11 Bankruptcies measured from the discharge or dismissal date of the bankruptcy action.

  • 4-year waiting period from the dismissal date, and a 2-year waiting period is required from the discharge date, for Chapter 13 bankruptcies. The shorter waiting period is based on the discharge date recognizes that the borrowers have already met a portion of the waiting period within the time needed for successful completion of a Chapter 13 plan and subsequent discharge. A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year waiting period.