What is A Credit?

A finance term referring to mortgage borrowers and applicants with very good credit history. They usually have FICO credit scores of 660 or higher; A-plus credit starts at 720.

• Conforming loan programs require A-credit of its applicants.
• In the mortgage industry, borrowers must satisfy all of the following requirements to be considered A-credit:
• No foreclosure or bankruptcy within the past seven years;
• No late payments on their mortgage history during the past year and no more than one late payment in the past two years;
• No more than one late payment on any installment loan during the past year and no more than two during the past two years;
• No more than two late payments on revolving accounts during the past year and no more than four during the past two years;
• No open collection accounts; and
• A credit score of at least 660.

FHA and certain government-guaranteed programs will also finance homebuyers and homeowners with A-minus and B-credit. But most borrowers with damaged credit are forced to use sub-prime or Alt-A loans.

For more information, see also the following entries:

• :Alt-A Loan:
• :Bankruptcy:
• :Conforming Loan:
• :Credit History:
• :Credit Grade:
• elinquency:
• :FHA Loan:
• :FICO:
• :Foreclosure:
• :Installment Loan:
• :Late Payment:
• :Mortgage Loan:
• :Revolving Debt:
• :Subprime Loan: