A person’s FICO score is indicative of their WILLINGNESS to pay their debts in a timely manner. It has EVERYTHING to do with the CHARACTER part of the 3 C’s of credit.
Almost everyone I know who has bad credit right now used to have good credit. One couple I know had pristine credit for over 25 years, but lost their way speculating on the sure thing housing market. You would be surprised how big medical bills or long term unemployment can turn even the most characterful individual into a no good deadbeat. Credit scores should be treated differently when the economy is going up and when it is going down.
With regards to home loans, I would question how a worthy borrower with high income would not have saved for a decent down payment. Personally I would rather someone with a lower score and bigger down payment.
