credit score: 580+ FICO FHA Lending Makes a Comeback - 01/31/11 02:10 PM
Yes, it is true.  FHA mortgages for 580+ FICO borrowers are making a comeback.  In the last 2-3 years, the minimum credit score requirement for FHA loans has changed many times. 
Just a few short years ago, there was no minimum credit score required for an FHA mortgage.  Soon, most all mortgage companies began requiring a 580+ minimum FICO.  A while later, that minimum score requirement was raised to 620+.  Last October, many lenders went to a 640+ FICO on all FHA mortgages. 
All of these changes were in response to the Secondary Mortgage market.  While the Secondary Market in general has … (6 comments)

credit score: What Is An Underwriting Guideline Overlay? - 01/01/11 05:23 AM
Why does it sometimes seem that underwriting guidelines vary from mortgage company to mortgage company?  Well, it is because, sometimes they do.  Each agency (Fannie Mae, Freddie Mac, FHA, VA, USDA) sets the minimum guidelines for the approval of a mortgage that they will back if it defaults.  An overlay is when a mortgage lender adds an additional restriction to their guidelines.  One huge misconception is that
There are many types of overlays.  Some of the most common include:

When an Underwriter makes a condition that someone doesn't agree with, they are not just doing it because they want to.  There is a valid reason behind it. 
… (2 comments)

credit score: Beware of Black Friday.....That Extra 10% Off Can Actually Cost You Thousands of Dollars - 11/23/10 02:16 AM
Black Friday has historically been one of the single largest shopping days in the country.  The Day After Thanksgiving Sales of Black Friday are considered to be the "official" start of the Christmas holiday shopping season. 
Black Friday is the day that retailers make a huge advertising push for the Christmas season.  With this, comes the offer from any retialers to save an extra 10% on your entire purchase.  To get the extra discount, you are typically required to open a new store credit card to receive that discount.  Some electronics or home improvement retailers use their store credit cards to offer No Interest Financing instead … (4 comments)

credit score: 640 Is Becoming the New 620 for FHA Mortgages Starting Tomorrow!!!!! - 10/03/10 11:30 AM
Several changes to FHA loans will take effect tomorrow, October 4, 2010.  The Upfront Mortgage Insurance Premium will be reduced by about 55% on many loans.  All FHA loans will see the monthly mortgage insurance premiums rise by around 60%. 
More on this at: HUD Announces Changes to FHA Mortgage Insurance Premiums - Effective October 4, 2010
Starting tomorrow, for the very first time, HUD also has credit score minimums that will go into effect.  Prior to tomorrow, HUD has never had a credit score minimum.  Lenders, however, have their own minimum credit score requirements. 
More on this at: Before You Get Too … (0 comments)

credit score: Before You Get Too Excited, No HUD Has NOT Lowered FHA Credit Score Requirements - 09/23/10 02:54 AM

 
 
Before you get too excited, no HUD has NOT lowered the credit score requirements for FHA loans.  I have seen several posts written over the last few weeks about the new credit score requirements that go into effect on October 4, 2010.  This is true.  However, the facts are not clearly stated.While I may have missed it, I have yet to see one post that informs reader that, prior to this announcement, HUD has NEVER had a MINIMUM credit score requirement for FHA loans.  Yes, you heard that correctly.  Since HUD created the FHA program in the National … (6 comments)

credit score: Do You Know Who Is Responsible for Setting Mortgage Underwriting Guidelines??? - 09/19/10 03:28 PM
What is the Secondary Market you ask? In mortgages, the Secondary Market is where bonds and securities are backed by the value of mortgage loans, collateralized and then they are sold on Wall St.  These security instruments are also known as Mortgage Backed Securities (MBS).  Being packaged as an MBS is how mortgage loans are bought and sold after the borrowers have closed on their transaction.  All mortgage loans are underwritten by the lender to predetermined underwriting guidelines.  Therefore, each mortgage loan program has its own unique set of underwriting guidelines.  This loan programs include:
Conventional (Fannie Mae & Freddie … (3 comments)