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@UpAndComing74 wrote:
After being excited that the tax rebate for first time homebuyers was extended I started my journey of credit restoration since at that time my credit union advised me that I needed at least a 620. My scores Were 517/542/572. This was Nov of '09. Now according to my fico my scores are TU 596/EQ 590. I checked scores on True Credit and it shows TU 611/EXP 612/EQ 602. B of A is telling me that I could qualify for an FHA loan with no minimum FICO needed. BUT THEN when I call my credit union, i'm being told that I would now need at least a 660. All I want to do is find a decent starter home with Lennar, or KB and take advantage of the tax credit before it's too late. Does anyone have any idea of the reason in variance of the above rules or requirements, or am I dreaming to expect to qualify for ownership before April of 2010? Please advise. Thanks.
The difference in rules is do to added restriction by said banks due to the massive forecloser mess and/or people being upside down on their loans. If you look at the general fha rules although they might have changed it, it says that a fico score isn't even needed to get a fha loan but the banks themselves are adding to the rules to cover their loan investment to you.
You might want to look into to loans like usda which will fund 100% of the loan but they have strict credit requirements as well. Also check to see if your city/county has downpayment assistance grants that you might be able to qualify for. As mickie said you need to get your cc utilization down and you should see a good size score bump.
@Anonymous wrote:The difference in rules is due to added restriction by said banks due to the massive foreclosure mess and/or people being upside down on their loans. If you look at the general fha rules although they might have changed it, it says that a fico score isn't even needed to get a fha loan but the banks themselves are adding to the rules...
Among other considerations, the Feds are penalizing banks with the highest default rates, putting pressure on them to tighten underwriting standards.