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B/C Loans
Loans that do not meet the conforming
borrower credit requirements of Fannie Mae and Freddie Mac
are called 'B', 'C' and 'D' paper loans vs. ‘A' paper
conforming loans. B/C loans are offered to borrowers that
may have recently filed for bankruptcy, foreclosure, or have
had late payments on their credit reports (and therefore have
a low FICO score). Their purpose is to offer temporary financing
to these applicants until they can qualify for conforming
‘A' financing. The interest rates and programs vary,
based upon many factors of the borrower's financial situation
and credit history.
The letter grades correspond to a numerical rage to better
understand the FICO scores provided by the three credit reporting
agencies.
A -- 760-850
-A -- 700-759
B -- 660-699
C -- 620-659
D -- 580-619
F -- 500-579
Click here to learn more about
credit scoring.
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