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In addition to the standard FICO score 8 or 9, mortgage lenders might use one of the following: FICO score 2. FICO score 4. FICO score 5. FICO score use among different credit bureaus.
The Experian FICO 98 score is named FICO Score 2, Experian FICO 04 score is FICO Score 3, TransUnion FICO 04 score is FICO Score 4, and Equifax FICO 04 score is FICO Score 5. [citation needed] The FICO Score XD is made with alternative data and was released in 2016. [27] Mortgage lenders use EX FICO Score 2, EQ FICO Score 5 and TU FICO Score 4 ...
So, if you spend an afternoon applying to 10 different mortgage lenders, it won't affect your FICO® Score at all for 30 days. Beyond that point, they'll be treated as a single inquiry.
The Federal Housing Finance Agency (FHFA) has mandated that mortgage lenders use VantageScore 4.0 for mortgages sold to Fannie Mae and Freddie Mac, beginning in the third quarter of 2024. This includes all loans guaranteed by these Government Sponsored Enterprises (GSEs), which make up the majority of residential mortgages. [18]
When considering the best credit score to buy a house, many lenders use the FICO model. It grades consumers on a 300 to 850 point range, with a higher score indicating less risk to the lender.
Industry-specific FICO scores range from 250 to 900, whereas general purpose scores range from 300 to 850. FICO scores are used by many mortgage lenders that use a risk-based system to determine the possibility that the borrower may default on financial obligations to the mortgage lender.
The specific models generally used for mortgage lending are the Fico Score 2 (Experian/Fair Isaac Risk Model v2), FICO Score 5 (Equifax Beacon 5), and Fico Score 4 (TransUnion FICO Risk Score 04).
Credit scores usually range from 300 to 850 showing the customer's creditworthiness. A customer with a high credit score shows that they are creditworthy and banks will have no problem giving them a loan. If a customer has a low credit score then banks would be hesitant to give out a loan and if they do it might be with a higher interest rate.
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