New Minimum Credit Scores Announced for FHA Loans

Logo of the Federal Housing Administration.Image via Wikipedia
From the Greater Boston Real Estate Board (GBREB) http://www.gbreb.org/

New Minimum Credit Scores Announced for FHA Loans
Earlier this month, the U.S. Department of Housing & Urban Development issued Mortgage Letter 10-29 which announced changes in its minimum credit score requirements that will take effect in early October. Effective October 4, 2010, borrowers with a credit score below 500 will not be eligible for Federal Housing Administration (FHA)-insured mortgage financing. In addition, borrowers with a credit score between 500 and 579 will be limited to 90 percent Loan-to-Value financing, which requires a 10 percent down payment. Borrowers with a credit score of 580 or higher will be eligible for maximum financing, which does feature a 3.5 percent minimum down payment requirement.




Enhanced by Zemanta

Popular Posts