Credit

An informal term referring to borrowers and applicants with very good credit history; they usually have credit scores of 650+, with A-plus credit starting at 720. Conforming loan programs require A-credit of its applicants. In the mortgage industry, A-credit borrowers must satisfy all of the following requirements: (1) no foreclosure or bankruptcy within the past seven years; (2) no late payments on their mortgage history during the past year and no more than one late payment in the past two years; (3) no more than one late payment on any installment loan during the past year and no more than two during the past two years; (4) no more than two late payments on revolving accounts during the past year and no more than four during the past two years; (5) no open collection accounts; and (6) a credit score of at least 650. For more information, see the "Analyzing Credit Reports" article in the "Loan Process" section.

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