Homebuyer Readiness Scorecard

720 or higher (Excellent / Prime)

Qualifies for lowest conventional rates and minimal mortgage insurance.

660 - 719 (Good / Standard)

Meets standard conventional and FHA guidelines with strong approvals.

580 - 659 (Fair / Minimum Qualifying)

Meets FHA 3.5% down criteria; rapid rescore recommended for better terms.

Under 580 or No Established Credit

Requires targeted credit repair and positive tradeline engineering first.

Zero collections, no late payments in past 24 months

Pristine payment trajectory under FICO 10T trended algorithms.

Medical collections only (Fully paid or under $500)

VantageScore 4.0 and modern underwriting largely ignore paid medical debt.

1-2 older non-medical collections (Over 2 years old)

May require an underwriter letter of explanation or settling prior to closing.

Recent 30/60 day late payments in past 12 months

Requires Metro-2 factual disputing and 6-12 months of re-established on-time history.

2+ years in the same industry with W-2 paystubs & tax returns

Ideal institutional underwriting documentation.

2+ years self-employed / 1099 with consistent filed tax returns

Requires 2 years 1040s or 12-24 month Bank Statement Non-QM program.

Recent job change within the same professional field

Underwriters accept this with an official offer letter and 30-day paystub.

Frequent gaps in employment or undocumented cash earnings

Must establish 24-month stable income records or co-signer.

10%+ down payment plus 3-6 months mortgage reserves

Provides strong compensating factors for automated approval.

3.5% - 5% down payment plus closing cost savings

Standard FHA and Conventional 97% readiness.

Limited savings ($1,000 - $3,000) seeking Down Payment Assistance Grants

Prime candidate for Texas DPA programs (TSAHC / TDHCA).

Zero savings currently available

Focus on automated savings plans and gift fund arrangements.