David Saks: July 2014

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 3489


"C" credit might equate to no credit for some in today's lending environment.

The borrower is facing considerably higher interest rates, Loan-to-value numbers come in at 75% to 80% of the appraisal, and it's just a tougher loan to risk, period.

Here are some additional factors to consider. If a borrower has a "C" on the report card they must have :

• Fair credit last 12 months.


• Job stability - one year in the same profession (can be six months for some lenders).

• Debt ratio (house payment, installment & revolving) not over 55% (probably much less for some lenders in todays new lending environment) of gross income.

• Consumer credit . 30-day late payments might not be counted, no more than five 60 or three 90 day lates or delinquincies.

• Mortgage credit . no more than twelve 30-day late payments (although I'm skeptical about this)

one 60, one 90 in last 12 months.

• Liens, judgments or collections must be paid if they affect the title to the property.

• Bankruptcy . at least two years since it's discharge and a fair credit history since the discharge.

Again, this isn't a strict rule of thumb here, just observation and a little research, and I'd like to hear from our mortgage and lending community. I think our community of lending pro's have a lot to say and I'm counting on them to set the record straight.

David Saks

Time&Temp Memphis

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Comment balloon 0 commentsDavid Saks • July 12 2014 11:58AM
Real Estate Practice : Lesson 3489
"C" credit might equate to no credit for some in today's lending environment. The borrower is facing considerably higher interest rates, Loan-to-value numbers come in at 75% to 80% of the appraisal, and it's just a… more
Real Estate Practice : Lesson 2420
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Real Estate Practice : Lesson 3480
The word means to "clear from blame or remove guilt". One of best things about the exculpatory clause is that it allows a buyer to purchase a property without any personal liability. In an exculpatory clause, the… more