Credit Scores and the Impact of Foreclosures and Other Credit Problems
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. 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 www.myfico.com. NAR has also prepared a chart showing the impact of various adverse credit events on the ability of consumers to purchase another home with a FHA, Fannie Mae, or Freddie Mac mortgage.