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Many REALTORS® have questions about FICO scores and the impact of various adverse credit events on the score. A FICO score is a credit score computed using proprietary formulas of the FICO Corporation (formerly called Fair Isaac), but there is not just one FICO score, for reasons described below. FICO is not the only credit score available, but it is the only credit score currently accepted by Fannie Mae and Freddie Mac for underwriting. VantageScore is growing in acceptance outside the mortgage industry and may gain acceptance in the future as the GSEs are reviewing the scores they used. More education about VantageScore can be found at vantangescore.com/consumers/education.
The following FAQs, for the most part, are based on information posted by the FICO Corporation, including “Understanding Your FICO® Score” and Q&As found on the “Education” tab at myFICO. NAR has also prepared a chart showing the impact of various adverse credit eventspdf on the ability of consumers to purchase another home with a FHA, Fannie Mae, or Freddie Mac mortgage.
