Delinquencies, collections and defaults are major negatives.  Although having few or no credit entries in your credit report does not indicate you are a bad borrower.  It fails to prove you that you will be a good borrower.  In fact many lenders automatically grade a “No-Credit” borrower as grade C.

AA Good A few OLD 30 days late, a couple of OLD 60 day late. A 30-60 day late only once on a mortgage payment. Bankruptcy or foreclosure has been discharged or settled at least 4 years with some re-established credit. Down payment 5-10%
A - minus Minor blemishes in the last 2 years No more than two 30-day late mortgage payments. One 60-day late payment if you have revolving credit or are on an installment plan. Bankruptcy or foreclosure has been discharged or settled over 2 years with some re-established credit. Down payment 5-10%
B Acceptable blemishes in the last 17 months Up to four 30-day late mortgage payments. Or, up to two 60-day late payments with revolving or installment debt. Or, one 90-day late mortgage payment in last 12 months. Bankruptcy or foreclosure has been discharged or settled at least 18 months. Down payment 15%.
C Acceptable blemishes in the last 12 months No more than six 30-day or three 60-day late mortgage payments. Or, two 90-day late payments with revolving credit or installments. Bankruptcy or foreclosure has been discharged or settled at least 12 months. Down payment 20%.
D Sporadic disregard for timely payments Multiple 90 day late payments. Mortgage payments longer than 90 days past due. Down payment 25%.

If you’d like to know more about the purchasing process we have written an informational handbook that explains the entire process from A to Z.  You'll find answers to basic and difficult questions.  The book is FREE and NO OBLIGATION, whatsoever.

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