Fannie Mae Tightening Rules
Tuesday, September 29, 2009
As if getting a buyer approved to buy home wasn't getting hard enough, Fannie Mae is raising its lending criteria. Starting Nov 1, 2009, borrowers will need a minimum credit score of 620, instead of the current 580 rule.
UUGGHHH! For those credit challenged... lets go buy a house today!
Read below for more detail!
Derek Gutting, The Gutting Group, Keller Williams Realty, 317 846-4888 direct
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The government-backed mortgage financier Fannie Mae is tightening its lending standards, according to an article in DSNews.com. The GSE says it will require a credit score of at least 620 for all mortgage loans delivered in accordance with its Selling Guidelines, including loans guaranteed or insured by a federal government agency, such as the Federal Housing Administration (FHA), Veterans Affairs (VA), or HUD. The new minimum will take effect for manually underwritten loans and all government loans on November 1, and for loans underwritten using Fannie's Desktop Underwriter, when the software is updated on December 12. Currently, the minimum score for most loan types is 580, with no minimum for government loans. Exceptions to the new minimum credit score requirement are limited to mortgage loans that are manually underwritten with nontraditional credit and those originated in accordance with the GSE's Refi Plus offerings, which are being used to help underwater borrowers refinance under the Obama administration's Making Home Affordable program.
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