In an effort to keep foreclosure rates down, many FHA mortgage lenders recently began imposing their own minimum credit score requirements.
Filed under FHA news, Mortgage News, Published Articles · Tagged: FHA loan guidelines, FHA mortgage, income documentation
In an effort to keep foreclosure rates down, many FHA mortgage lenders recently began imposing their own minimum credit score requirements. These are additional lending requirements that go beyond the scope of FHA loan guidelines. Mortgage lenders continue to require more income documentation to help prove that borrowers have the ability to repay the loan.
Clearly, they’re trying to protect themselves: if a particular mortgage broker or lender’s default rate exceeds neighboring lenders, they can be audited and even removed from the program.“In the last month and a half, there has been a dramatic increase in the minimum credit score required,” said Michael Moskowitz, president of Equity Now, a New York FHA mortgage lending that makes FHA home mortgages. “Some lenders increased their credit score minimums to 580 and other lenders raised the minimum requirements up to 620.”
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