Comments on: FHA to Tighten Credit Score Requirements for Borrowers

By: Increased Credit Score Requirements a Good First Step

Increased Credit Score Requirements a Good First Step — Mon, 19 Jul 2010 22:41:03 +0000

[...] welcome step back from the previous unrestrained growth of the FHA. The FHA’s proposal raises the minimum credit score from 580. That will not be a unfairly high threshold for most applicants, with most FHA-backed loans now [...]

By: Home Buying and Home Selling Tips » Blog Archive » FHA to Tighten Credit Score Requirements for Borrowers

Mon, 19 Jul 2010 07:34:57 +0000

[...] Full story is available on eCreditDaily [...]

By: Cost of FHA Mortgage Set to Rise for Some – Wall Street Journal (blog) | Mobile Home Loans

Mon, 19 Jul 2010 00:28:40 +0000

[...] eCreditDaily.com [...]

By: Teresa Pringle

Teresa Pringle — Sun, 18 Jul 2010 23:29:34 +0000

Very good article – our company works with the real estate community to invest in short sale properties. Interestingly, not many of these were FHA backed mortgages. It is truly my fear that dropping the seller assist from 6 to 3 percent is going to have a detrimental effect on home sales. FHA is the most commonly used mortgage product today especially for first time buyers. Whether or not the FHA allows sellers to contribute to the buyers closing costs does not seem to have any direct affect on the likelihood that the borrower will default.

I agree with the credit score requirements anyone who buys a home should have their finances in order. However in today’s economy, it’s not always easy to save to buy a home, and down payment assistance is almost always a deal maker or breaker.

By: Credit Report – FHA to Tighten Credit Score Requirements for Borrowers – eCreditDaily.com

Sun, 18 Jul 2010 22:34:15 +0000

[...] eCreditDaily.com [...]

By: tedi055

tedi055 — Sun, 18 Jul 2010 21:31:14 +0000

I’m not surprised; I’ve been seeing FHA moving toward this credit range for a while. Actually don’t be surprised if you see them moving to the 600 and 620 ranges soon. It simple math, reliable borrowers cost the lending institution and the ones insuring the lending institutions (FHA) less money in the long run.
I’m sure FHA is thinking that by making those borrowers with lower credit scores make a bigger commitment, they’ll have a bigger stake in the home and thereby be more willing to stay up to date with their mortgage.
the new FHA move helps the majority of the borrowers, because it help FHA insure more loans in the long run, by avoiding those loans that would eventually default.