Prime vs subprime loan

[Anonymous]

What credit score will give you a prime rate vs subprime rate on a mortgage? 

[ShanetheMortgageMan]

Prime loans are a comprehensive analysis of your situation, so a score alone will not determine if you are considered "prime" vs. "subprime".   Prime loans will consider debt to income ratio, reserves after down payment/closing costs, credit score, credit history, down payment, and employment length/type (self-employed vs. employed).  Someone with a 500 score and clean credit for 12 months could get a Prime rate if they had a huge down payment (likely 30%+).

[Anonymous]

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ShanetheMortgageMan wrote:

Someone with a 500 score and clean credit for 12 months could get a Prime rate if they had a huge down payment (likely 30%+).

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Ok  what are the the chances of someone getting a prime mortgage with a 620 score with 3% down.

Credit has been good for the last 12 months.

[ShanetheMortgageMan]

What happened in the previous 12 months to that?  Fannie/Freddie mainly look back for 24 months, but items beyond 24 months can still have an impact.  If the previous 12 months were pretty solid as well, then as long as the debt ratio is good, and you'd have 2 times the proposed PITI payment in reserves after down payment/closing costs... then I'd say there is a pretty good chance.

Also keep in mind FHA isn't score sensitive, so 12 months of clean credit is definitely a start.