Dear Friends, It looks like lenders are going to make it even tougher to get a mortgage loan. Your credit score has just become a that more important.
Even if you have good credit, if your score is not at least 720 FICO score you will be penalized by FNMA and even government loans like FHA are charging you higher rates.
If you like to get a free "Credit Review"
Call our offices at (909)307-0977
April 2, 2008
Fannie Mae Tightens Loan Standard to Protect Itself By REUTERS
Fannie Mae, the mortgage buyer, has told lenders that it will require a minimum credit score for the loans it buys, tightening mortgage standards to protect itself from record foreclosures sweeping the country.
Lawmakers have been pressuring the largest company, along with its rival Freddie Mac, to more aggressively buy home loans in a bid to lower mortgage rates and prop up housing.
However, the two government-chartered companies are battling their own problems as home loans sour. In response to soaring mortgage defaults, they are increasing fees, restricting the loans they purchase and trying to preserve and raise capital.
The latest steps are part of amended underwriting practices for loans Fannie Mae buys, aimed at adjusting prices to reflect heightened housing market risk and protecting the company