Credit Scores for Home Loans

If you are planning to finance or refinance your 首页, you need to understand a thing or two 关于 what is happening in the 按揭 universe. As you may already know, the 按揭 industry had very low standards for consumer credit ratings and 首页 loan downpayments a few years ago. The story on the street was that if you had a pulse, you could get a 首页 loan with no money down. This was not totally true, but suffice it to say that lending standards were pretty low. 抵押贷款 companies would write a loan with a consumer, then bundle that loan together with other loans and sell them to investors. Clearly, that policy did not work. Consumers began to default on their loans at an alarming rate and the financial 按揭 industry collapsed around those defaults.

To help, the Bush Administration and the Obama Administration bailed out the banks. Many of the 首页 loans in America are backed by the Federal Housing Administration, a division of the Department of . FHA insures the loans. Since the passing of the Frank-Dodd legislation, standards for 首页 mortgages have increased as mandated by law. Among those standards are requirements for FHA backed loans and standards for Government Sponsored Entities like Fannie Mae and Freddy Mac.

The first new standard is that consumers should anticipate putting 20% down. You can put less down, but that puts you into a higher risk type of 按揭 and you will likely pay a higher rate.

The second new standard is that consumers should Only

You may not understand all of these terms and conditions. Century 21 Hometown 代理商 can explain them to you, and/or set up a call or meeting with PrimeLending. PrimeLending representatives are in Century 21 Hometown office every day.