mortgage credit score model

Mortgage Credit Scores. For example, the three credit bureaus have their own generic scoring model, known as the VantageScore. Consumers who use Credit Karma see VantageScore credit scores from Equifax and TransUnion. But in the world of mortgage lending, FICO credit scores still reign supreme.

The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct.

FICO score 5 is one alternative to FICO score 8 that is prevalent in auto lending, credit cards, and mortgages. In particular, FICO score 5 is widely represented in the mortgage industry.

However, FICO 9 will eventually add 12 more scores to the count: a new general risk score per bureau plus a new mortgage, auto and credit card industry score for each.

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A credit card lender may also use some type of in-house credit scoring model, not to replace FICO scores, but as an additional form of validation of your credit score. The in-house scoring model may more closely approximate the credit experience that the credit card lender sees with its own portfolio of credit card customers.

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The higher your credit score, the lower the interest rate on your mortgage. See how else your credit score affects your mortgage rate.. model for credit scores, which grades consumers on a 300.

as FICO’s model requires around six months of credit history, while VantageScores are created after just a month or two of reports on borrowing behavior. Unfortunately, you can’t really choose which.

These scores may not match up exactly with credit scores based on the FICO Score 8 credit-scoring model, but they rely on many similar factors. For example, your credit card utilization rate is considered a high-impact factor in both the VantageScore 3.0 and fico score 8 credit-scoring models.

The Federal Housing Finance Agency (FHFA) is back to exploring the use of third-party credit score models to be used by Fannie Mae and Freddie Mac in the underwriting of mortgage loans. The agency -.