FHA Loans Going to 640 Credit Score
Wednesday, October 27, 2010 at 10:10AM 
As you know, I'm committed to bring you the most updated and need to know information on the mortgage industry and the industry changes. I have hesitated in broadcasting the following news because it's not "set in stone" yet. However, in having conversations with many of the real estate agents I work with, I think I need to let you know the latest:
There are five major servicers of mortgages in the industry (along with a few very minor players). Typically in our market and the times we are in, the five major players set the rules and the rest follow suit. In the past few months all but one of the major servicers have changed their minimum credit score requirement from 620 to 640. As of today their is only ONE major servicer willing to work with a credit score between 620 and 639 and we expect that to change very soon. My sources are telling me that this last servicer is expected to make the change by 11/1/10.
What does this mean to you if you are planning to purchase a home? Today, a credit score of 620 is acceptable. Monday, only scores of 640 or above will be acceptable. So this is a CALL TO ACTION! If your score is below 640 you must get your interest rate locked in on a loan before THIS FRIDAY or you will have to wait until your credit score increases.
Get the word out on this big change. Send this article to your friends, family or clients who are thinking about purchasing a home. With allowable credit scores still at 620 until this coming Monday, historically low interest rates and great inventory, now is the time to purchase!
Reader Comments (1)
Very interesting Blog. Thanks for sharing the info, it is very useful information for me.
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