I don't have time to write an article about this just yet, but I wanted to get the info out to my people....
620 or bust it seems.
Everybody needs to Move it, Move it, Move it!!!
'Cause minimum credit scores are going UP!
I'm not talking about folks having BAD credit and having trouble buying a home... but I have a borrower right now that has a 618 score - NO LATE PAYMENTS. He has 20 years of credit history...
He owes Best Buy and Macy's and Room to Go (And Amex, and Bof A for 2 cars, and Wachovia for a mortgage or 2). NO LATES. But his middle score is 618.
Well, according to our friends at Wells Fargo
- pretty soon this borrower (who makes over 150K a year) will not QUALIFY to purchase a home! Even though he has $98,000 liquid. His ratios are 18 / 31.
SunTrust has ALREADY put this rule into play - and now Wells. PLUS, the pricing for these borrowers (at other places) is already AWFUL!
This is SIGNIFICANT. This is not just for Conventional loans. I'm talking USDA, VA, FHA -
NOBODY RIDES if their score is less than 620!
(at least not if they are getting their loan with SunTrust or Wells Fargo!)
I know it won't make any difference, but I still called my Congressmen yesterdayand let them know this is a HUGE part of the homebuying market that is now EXCLUDED from purchasing a home!
If you want more information on how to raise your FICO / Credit Score, check out our site dedicated to helping you out! Steve and Eleanor Thorne, Meridian Residential
Thanks for reposting as I didn't see the original. I thought 620 was the mark a few months ago with FHA making some exceptions. Interesting to hear that now even FHA won't lend with at least a 620. Granted, average scores are higher across the country, but in DFW, the average is only 635. They definitely took out about half of the buying pool.
@ Donna.... it's not FHA... FHA will still allow below 500. It's the investors that are making the changes. I will be writing about this tonight, because in my opinion, I don't see this happening across the board. And we might get panic now, since this is opinion, not fact.
Thanks Jeff