To help better understand the subprime or nonprime world, you have to understand the importance of credit score and some of the terms that lenders and mortgage brokers such as ERATE use.
Credit Grade
Grade:
Mortgage Lates:
A
0 x 30
A -
1 x 30
B
1 x 60
C
2 x 60 or 1 x 90
D
2 x 90 (<120 days)
Fannie Mae & Jumbo Mortgage Rates Just One Click!= Current Rate Chart
Bankruptcies:
Chapter 7 – clear all debts without obligation to repay
Chapter 13 – repay full or partial amount of debts to creditors
Chapter 12 – similar to Chapter 13 but for family farmers
Chapter 11 – individuals with big debts or businesses that want to reorganize
Acronyms:
NINA – no income no asset
NIV – no income verification
LIV – limited income verification
NOD – notice of default
BK – Bankruptcy
BK7 – Bankruptcy Chapter 7
BK13 – Bankruptcy Chapter 13
W/E – wage earner
S/E – self employed
VOM - verification of mortgage
VOR - verification of rent
VOE - verification of employment
VOD – verification of deposit
VOL – verification of loan
DTI - debt to income
LTV - loan to value
CLTV/TLTV - combined loan to value/total loan to value
Fannie Mae & Jumbo Mortgage Rates Just One Click!= Current Rate Chart
