Fannie Mae and Freddie Mac
Great News – Fannie Mae and Freddie Mac now accept a 620 FICO score for Mortgage Loans!
Has less than stellar credit prevented you from getting a mortgage? If so, you may be in your new home sooner than you think!
Fannie Mae and Freddie Mac are easing tight lending standards to give worthy high-risk borrowers an opportunity to become homeowners. The minimum down payment has been reduced from 5% to 3%. Although the goal of these mortgage giants is to help first-time and lower income borrowers, they will still require borrowers with less than a 20% down payment to purchase private mortgage insurance.
FICO is also revising their formulas for generating grades this fall. No longer will overdue medical bills and paid collection accounts have a negative effect on your credit score.
Reporters E. Scott Reckard and Tim Logan write, “Improved scores could make it easier for millions of Americans with past credit blemishes to get loans or to get them at lower rates. Experts cautioned, though, that borrowers might have to wait a year or more to see the effect of changes because lenders will not quickly overhaul their systems to evaluate consumers and price loans for them.
What’s more, the effect on the housing market, a major key to economic growth, is likely to be muted. Analysts said change would be seen more rapidly in auto loans and credit cards than in mortgages.”
Fannie Mae, Freddie Mac and FICO are fighting for consumers who have had a financial meltdown and are rebuilding their credit the correct way. If you want to take advantage of this opportunity, NOW is the time to set your financial house in order!
Apply the principles in the 720 Credit Score program. Within 12-24 months, your credit score will put you in a position to take advantage of the eased lending standards of Fannie Mae and Freddie Mac. In a year or so, you can become a proud homeowner instead of renter if that is your desire.
Fannie Mae, Freddie Mac, FICO, and 720 Credit Score are extending you a helping hand. Are you ready to accept the challenge?