credit scores: More Level Playing Field May Benefit FHA
- 01/23/15 02:07 AM
Private mortgage insurance premiums are higher for people with lower credit scores. FHA mortgage insurance premiums are the same for all FHA borrowers regardless of their credit score. The Urban Institute recently posted a blog that indicates that the break-even credit score with a 95% LTV has risen from a FICO score of 680 to a score of 740. The blog points out some interesting scenarios that may well benefit FHA and / or FHA borrowers. While the Obama administration estimates that approximately 2,000,000 new FHA borrowers will be benefited by the lower FHA MIP rates, the Wall Street Journal estimates that an … (12 comments)
credit scores: Will 3% Downpayment Mortgages Return?
- 11/06/14 07:27 PM
There was a blog posted in The Washington Post yesterday afternoon that indicated that researchers from the Urban Institute have been reviewing the performance of low downpayment loans that have been backed by Fannie Mae in the past. Those researchers found, "that the default rate for loans with 3 percent to 5 percent down were very similar to the default rates on loans with 5 percent to 10 percent down". They also found that very few people took advantage of the 3% downpayment programs previously offered by Fannie and Freddie. Most people who took advantage of the programs as previously in … (29 comments)
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Randy Kirsch
(NMLS# 1012303) Your Dedicated Mortgage Consultant
Private mortgage insurance premiums are higher for people with lower credit scores. FHA mortgage insurance premiums are the same for all FHA borrowers regardless of their credit score. The Urban Institute recently posted a blog that indicates that the break-even credit score with a 95% LTV has risen from a FICO score of 680 to a score of 740. The blog points out some interesting scenarios that may well benefit FHA and / or FHA borrowers.
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