Find out the credit score range for you to be able to get an approval when applying for a mobile home.
To acquire a mobile home through credit financing, you will be required to have a certain level of credit score to apply for credit financing of the mobile home. Typically, the minimum credit score is assumed to be around the 600 mark.
If you have a credit score that is greater than 600, your chances of securing the offer are high. However, if you have a lower credit score, you will be required to give a document of your timely credit payment over a course of 12 months. You may put up a heavy down payment before you start your monthly credit payments. If you are willing to pay a higher down payment, your overall credit payments also go down, and your chances of securing the offer are also increased.
Explanation of credit score ranges
It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.
A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.
Bad credit score
People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.
Good credit score
A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.
Very Good
A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.
Excellent
An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.
How are credit scores calculated?
The weight of each of the five categories are; 30% of amount owned, 10% is for the new credit, 15% accounts for the length of credit history, 10% is the credit mix and the last 35% accounts for the person's payment history.
The FICO score takes into consideration positive as well as negative aspects of the credit report. The percentage or the weight of any of the categories mentioned above may differ from a person to another depending upon the information available in the credit report.
The FICO score takes all of the information from your credit report. However, the banks or any other lending institution might look at your income, type of credit and employment history when you apply for a loan or mortgage.
Once a certain lender asks for a client's credit report, they can also ask for the Fico score. Other sources say that your Fico score will include 35% of your payment history, 30% of your credit utilization, and 15% as to how long have you been borrowing.
Mobile home financing options based on credit score
For the mobile homes, you need to have a very good credit score along with consistent and stable job and salary package. The mobile home users are typically assumed to have a weak financial position and a lot of risks associated with such people's loan request of defaulting on the credit payments or the loan amount.
If you have a credit score over 600 and have a stable income, your chances of getting the loan request approved are higher compared to someone who has a credit score around 500 or below. If you have a credit score in the region of 600, you should look to apply for the FHA loans.