Fannie Mae Raises Credit Standards
April 2, 2008
Fannie Mae has tightened standards for the home mortgages it guarantees or buys.
The government-sponsored provider of home loan funding told lenders Monday it will require a minimum credit score of 580 for most loans it buys on an individual basis. Credit scores range from 300 to 850. In the past, Fannie had no minimum score.
Fannie also told lenders it will increase the period needed for borrowers to re-establish credit history after a foreclosure from four years to five. Fannie said it would allow shorter recovery periods for borrowers with “documented extenuating circumstances” that caused the foreclosure.
In a separate memorandum, Fannie, told loan services last week that it could extend forbearance periods on delinquent borrowers to as long as six months to allow borrowers time to find an alternative to foreclosure.
What this means to San Antonio potential buyers it’s more important than ever to improve your credit score. If you need credit repair check out the realationship we have with DHI who offers the DHI Mortgage Home Buyers Club (HBC) which can assist you with the following:
- Budgeting
- Responsible spending
- Debt reduction
- Establishing positive credit
- Direct Bureau rescoring
- Credit scoring models
- Free credit reports
- Intensive coaching
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P.S. Tell Tanya from DHI Mortgage that Daniel Gaitan from Trend Setter Realty sent you. Thanks!
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