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In case you need yet another reason to consider a Florida hard money loan in 2020, listen up. FICO is making some considerable changes to the way it calculates a person’s credit score, and it may result in prospective borrowers facing even greater difficulty in getting approved for a loan.

To better assess a borrower considered to be a risk, FICO is making four integral changes. Individuals that have a level of debt that continues to rise will likely see their score drop. Furthermore, FICO will be paying closer attention to missed payments when calculating scores. A consumer that applies for a personal or payday loan will also be considered more of a risk and will see their score drop. FICO will also focus more on the utilization of credit, so those high balances near their limits will likely lead to a score reduction.

If you’re looking to purchase or invest in a home, chances are you’ll need to apply for financing. Hence, if you’re going through the traditional route by seeking a bank loan, there are greater odds of being turned down if FICO’s new scoring means your creditworthiness is not up to snuff. A hard money loan may be the solution.

To read more, visit https://www.wsj.com/articles/fico-changes-could-lower-your-credit-score-11579780800.

This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on investor resources Miami or Tampa hard money lending, please call 954-816-0388 or fill out our application.

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