"A" Credit Borrower

An "A" Credit Borrower is usually someone who has a credit score of over 720.

The credit score is usually the "mid score" or the middle of the three credit scores that a borrower receives from the different credit bureaus on their credit report.

For example, if a borrower's three credit scores are:

• 740

• 710

• 690

then their midscore is 710.

Having one of the scores above 720 is not enough.

If a borrower had credit scores of:

• 740

• 725

• 710

then their midscore is 725 and they are considered an "A" credit borrower.

A borrower with this type of credit normally gets the best possible rates a lender will offer.

Lender rates are usually a combination of:

• credit score

• ability to document income

• ability to document assets

• downpayment size

• amount of equity in a property

Having a very high credit score is one of many factors that will go into the lender calculating your interest rate.

A borrower with a 725 mid credit score on their credit who is seeking 100% financing may end up with a higher rate than a borrower with a 700 mid credit score on their credit if this borrower is making a 30% down payment. From the lender's perspective a 30% down payment helps make their loan a lot less risky. As such they can offer a better rate.