B credit borrowers will have 1 or 2 late mortgage payments in the past 12 months, of which several are 30-day late payments, and very few are 60-day late payments. No collections or charge-offs. LTV's for B credit ratings go no higher than 80 to 95%.
C credit borrowers will usually have collections or charge-offs on their credit report. Their LTV usually drops to 70% and interest rates start to rise drastically. These borrowers should not have more than 3 or 4 late mortgage payments, of which there are certainly not more than a few 90-day late payments.
D credit borrowers usually have a recent bankruptcy or foreclosure. Loans which apply to D credit borrowers are usually used to re-establish mortgage credit with the intention of a speedy repay and a refinancing. LTVs are normally no higher than 60 to 65%.
Disclaimer: This is an attempt to explain FICO Credit Scores and Credit Ratings. This is intended for informational purposes only and should not be considered 100% accurate, as credit ratings may vary from lender to lender.
