This post by Eleanor Thorne has to do with minimum credit scores that she has to deal with specific to her lenders. However, it is the case that this is happening industry wide. There will be fewer and fewer loans available, if at all, for lower credit score borrowers. There are ways to increase your credit score, but don't fall for the shysters that are out there just to take your money.
As per normal, I have disabled comments on this blog. If you would like to make a comment, please do it on Eleanor's blog post, she wrote it.
Everybody needs to Move it, Move it, Move it!!!
'Cause minimum credit scores are going UP!
I'm not talking about folks having BAD credit and having trouble buying a home... but I have a borrower right now that has a 618 score - NO LATE PAYMENTS. He has 20 years of credit history...
He owes Best Buy and Macy's and Room to Go (And Amex, and Bof A for 2 cars, and Wachovia for a mortgage or 2). NO LATES. But his middle score is 618.
Well, according to our friends at Wells Fargo - pretty soon this borrower (who makes over 150K a year) will not QUALIFY to purchase a home! Even though he has $98,000 liquid. His ratios are 18 / 31.
SunTrust has ALREADY put this rule into play - and now Wells. PLUS, the pricing for these borrowers (at other places) is already AWFUL!
This is SIGNIFICANT. This is not just for Conventional loans. I'm talking USDA, VA, FHA -
NOBODY RIDES if their score is less than 620!
(at least not if they are getting their loan with SunTrust or Wells Fargo!)
I know it won't make any difference, but I still called my Congressmen yesterdayand let them know this is a HUGE part of the homebuying market that is now EXCLUDED from purchasing a home!