Common Sub-620 FICO Requirements

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Common Sub-620 FICO Requirements

Common Sub-620 FICO Requirements: Introduction

In this article, we are going to be going over some Common Sub-620 FICO Requirements.  In a lot of these situations, the items may come across as being overlays when in fact they are a necessity of the product you are trying to obtain.  The primary examples seen in this article are coming from a FHA 30 year fixed mortgage for FICO scores ranging from 580-619.  Although this loan program is not as lenient as the FHA loans for FICO scores of 620+ you can still get a loan if you satisfy the requirements set forth which are all included in the Common Sub-620 FICO Requirements,

Common Sub-620 FICO Requirements: Basic Requirements

When looking at the Common Sub-620 FICO Requirements we will first look into the basic requirements of the loans which is what most people will see when researching loan opportunities.  For this loan you are looking at a minimum FICO score requirement of 580-619.  This is also a loan that requires a 3.5% down payment which corresponds to a 96.5% LTV (Loan to Value).  As with most loans you are going to be required to provide 60 days of bank statements, 30 days of paystubs, 2 years of tax returns, and 2 years of W-2s.  On top of this you are going to need to provide a Verification of Rent or VOR for the previous 12 months if you are renting currently.  You should also be prepared to share Letters of Explanation or LOX for items that are derogatory on your credit and will need explaining to an underwriter.

Common Sub-620 FICO Requirements: Credit Requirements

Just because you can satisfy the Common Sub-620 FICO Requirements doesn’t mean there are some roadblocks along the way to getting your loan approved.  When you take a deep dive into the fine print of these loan requirements you will found a lot of other requests that are needed to be satisfied.

–          For open credit lines there needs to be at least 3 satisfactory traditional credit lines that have activity for the last 12 months and have been in good standing.

–          As mentioned early, if renting, there will need to be 12 months of cashed checks shown that rent payments wer emade in a timely manner.

–          No more than 1×30 day lates in the past 12 months on installment accounts (f.e car loans) and none in the past 180 days

–          No more than 2×30 day lates in the past 12 months on revolving accounts (f.e credit cards)

–          No collections can be had on housing utilities in the past 12 months

–          Waiting Period for Bankruptcy (Chapter 7 or Chapter 13) is 24 months from discharge date

–          Waiting period for a Short Sale is 36 months from completion date

–          Waiting period after foreclosure or deed-in-lieu of foreclosure is 48 months after property has been removed from your name or the sheriff’s sale date

Common Sub-620 FICO Requirements: Conclusion

As you can see, there are quite a few Common Sub-620 FICO Requirements and if you have your documentation and recent credit history in order, you should be good to go with this loan program.  The main objective is to have minimal or no derogatory items on your credit in the 12 months leading up to getting your loan.  Your most recent history needs to be satisfactory.  If you feel you need help with the Common Sub-620 FICO Requirements please feel free to call me ASAP and any time day or night at 888-900-1020 or inquire for more information through my website at

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