Finance
A NJ homebuyer with a credit score of 620 may find that conventional lenders require a higher down payment because:
ANJ law requires 20% down for all borrowers
BLower credit scores represent higher risk; lenders typically require higher LTV cushions or PMI for borrowers with lower scores✓ Correct
COnly FHA loans are available below 640
DThe NJREC sets minimum down payment requirements
Explanation
Conventional lenders use credit scores to assess risk. Lower scores trigger risk-based pricing adjustments (higher rates) and potentially higher down payment requirements.
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