There has been a lot of talk over the last few years about how liberal lending was 10 years ago and how not it is almost impossible to get
a loan. There is a lot of talk about credit scores and how, now you really need a high score to get a loan. At Cypress Springs, out preferred lender can loan
on a credit score as low as 620 where most other lenders will not go be low 640. Now you might ask me, Tim why are you calling 640 and 620 low? I hear on
the radio all the time that scores in the 600’s are considered good credit. Ah but is it?

 

 

 

 

The credit score was originally created by the Fair Isaac Corporation thus the FICO
score is the Fair Isaac Co score. While the model has been tweaked over the years, it was originally developed in 1959; it
remains the bench mark for lending. The score runs from a low of 300 to a high of 850. So I though what is a 620 relative to a range of 300 to 850? What if we
put it into a 100 point scale and developed A, B, C grades like we had in school. What would a 620 look like then?

 

 

 

 

As I understand things the FICO score is lineal in that a 10% increase from 300 to a 10% from a 600 score increase is the same math. A non-lineal range would be
like the scale used for earth quakes. In the Richter scale a level 2 earth quake is 2.5 times worse that a level 1 earthquake and a level 3 is like 4
times as great as a level 2. It just doesn’t lend itself to simple math like the FICO score does.

 

 

So if we compress the range of 300 to 850 into a 1 to 100 score range we get the following brackets:

 

Fico range of 801 – 890 = 90 – 100 = “A”

Fico range of 712 – 800 = 80 – 89 = “B”

Fico range of 623 – 711 = 70 -79 = “C”

Fico range of 534 – 622 = 60 – 69 = “D”

Fico range of 445 – 533 = 50 – 59 = “F”

Fico range of under 444 = below 50 = “Forget About It”

 

 

 

In final analysis we were in the day giving loans to “C” students and “D” students. When I was growing up these
scores would not have been looked upon very favorable in my home. Today we are still writing loans to folks with “C” grades and while the paperwork is more
cumbersome if you are an “A” or “B” student you can still get a loan, no problem, if you are a high “C” student then we can work with you.

 

 

 

 

 

Next step is to get your credit checked with our preferred lender Hometown Lenders’ and see what your grade is.
If you are an “A” or “B” then it is time to stop renting and buy that new home at Cypress Springs.

Please Contact Misty Patterson at Home Town Lenders. LLC

NMSL # 218318

Cell # 678-749-7133

Office # 678-690-5358

 

 

 

 

 

 

Cypress Springs is a Southern Heritage Homes Community.

Please contact Tim Sullivan the onsite agent for any questions about Cypress Springs.

Tim Sullivan 678-525-2583