Your Name:
Your Email Address:
To: (Email)
Email Preview:

Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Credit score fiasco!!!!!
FHA is tightening their lending requirements and very shortly raising down payments from 3.5 to 5 percent. Minimum FICO scores have gone from 580-620 and buyers are feeling the crunch. Credit card companies are lowering credit limits thus creating higher debt to limit ratios which in turn lowers FICO scores. Seems like a huge issue that interest rates and available balances can be controlled by credit score while a customer has an active account, and even if they pay on time. For example, a client with a 5k line of credit with a balance of 25oo is at a 50% debt ratio, if the company lowers their limit to 3000, their ration shoots up to 83% which will negatively impact a FICO, thus hurting the consumer when trying to apply for a mortgage or other credit. There is no incentive for credit companies to help you stay credit worthy, it is more profitable to hurt your scores.
... more

Are you on The Rain? Grow Your Network!

Spam prevention