Lenders are now lowering their minimum
credit score requirement in an attempt
to boost loan volumes that were on the decline since long term interest rates are now going up.
Despite gradual rising home prices and the slight recovery of the housing market, the mortgage lending rules still remained tight, cramping housing demand and economic growth. In an attempt to to regain the market for government insured loans, it appears that lenders are loosing the tight reign on qualifying for a government insured home loan;
like FHA, Fannie/Freddie and VA
like FHA, Fannie/Freddie and VA
According to government-sponsored enterprises or GSE , FHA is losing borrowers at the higher end of its credit score spectrum and lowering its average credit score to as low as 550 for some lenders like Wells Fargo .
Although FICO score requirements have been lowered other required lender guidelines still have to be met such as down payment amount and income to ratio.
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