FICO Scoring
Requirements
You must ensure that all individual BorrowersBorrowersPerson who is the obligor per the Note. , Key PrincipalsKey PrincipalsAny Person who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and who may be required to provide a Guaranty. , GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and PrincipalsPrincipalsPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. meet the Minimum FICO Requirement in Form 4660Form 4660Multifamily Underwriting Standards identifying Pre-Review Mortgage Loans and containing the minimum underwriting requirements (e.g., debt service coverage ratio, loan to value ratio, interest only, underwriting floors, etc.) for all Mortgage Loans. .
Guidance
To determine that the Minimum FICO Requirement is met, follow these guidelines:
|
If… |
Then… |
|---|---|
|
You obtain credit reports from 2 of the 3 credit information services for a Borrower, Key Principal, Guarantor, or Principal |
Use the lower of the 2 scores. |
|
You obtain credit reports from all 3 credit information services, for a Borrower, Key Principal, Guarantor, or Principal |
Use the middle score. |
| If... | Then... |
|---|---|
|
A Borrower, Key Principal, or Principal is married to another Borrower, Key Principal, Guarantor, or Principal |
Use the lower FICO score of the 2 married individuals. |
|
A Small Mortgage Loan has multiple individual Borrowers, Key Principals, Guarantors, or Principals |
Use the average of their respective FICO scores. |