Home : Blogs : Gary Miljour - Mortgage Lending for Tempe Arizona : Gary Miljour's Blog: Mortgage Lending for Tempe Arizona

FICO Scores on the Rise at Cherry Creek Mortgage

Cherry Creek Mortgage Company announced on February 20, 2009 that they are now requiring minimum credit scores of 620 or higher for most FHA and VA loans. This comes as no surprise since most industry standards with investors have already moved in this direction. These new credit score requirements will not apply to borrowers who are applying for an FHA Streamline Refinance or VA Interest Rate Reduction.

Now please be aware that this is NOT an FHA or VA rule. FHA and VA loans in general are not credit score driven programs. However, due to higher default rates on these type of loans, the investor market who buys these loans put in certain stop gaps to get a better handle on marginal credit score borrowers and high default rates.

Posted by Gary Miljour - Mortgage Lending for Tempe Arizona on 02/21/2009 02:38 PM

Comments (3)

fha, va, fico scores

This post has been included in Arizona Information Maricopa County, AZ Information Tempe, AZ Information
Post is included in group: Realtors®
Post is included in group: Arizona Real Estate
Post is included in group: Arizona Mortgages
Post is included in group: All About Mortgages/Mortgage Networking
Post is included in group: 1st Time Buyers

3 Comments on FICO Scores on the Rise at Cherry Creek Mortgage

FEB

What isnteresting About this Gary is that when I started in he business back in 1994, there was not scoring. We did it the old fashioned way, by counting lates and writing letter of explanation. Then when FICO began its scoring algorithm, the minimum for most lender was 620. I don't think it is a coincidence that things got worse when the score requirments went down. So no we have come full circle

FEB

Yup. We don't have minimum credit scores, but good luck getting it done if they are in the 500s.... This makes 100% sense. I haven't originated a deal below 600 in over six months. Its a waste of time.

MAR

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. Alessandra http://www.craigslisthelper.info

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?