Credit Score Limits Dropping For Mortgages
If you're in the market for a home, a high credit score is key to qualifying for a mortgage loan and getting the lowest interest rates possible. What do you do if your credit score is toward the lower edge of qualification?
The March 2019 Chartbook from the Urban Institute's Housing Finance Policy Center has good news for you. Median FICO credit score limits dropped from 730 to 727 from November 2018 to February 2019 – not much of a change, but every point matters when you're near the edge.
The housing crisis drove qualifying FICO credit scores for mortgages up significantly. Median scores for mortgages rose from 700 pre-crisis to 733 in 2013, but at the 10th percentile – generally the lowest acceptable credit score to qualify for a mortgage – borrower scores rose from less than 600 to just over 650 in 2013. As of February 2019, the 10th percentile borrower credit score was at 642, well above pre-crisis levels.
Potential homebuyers...
from MoneyTips http://bit.ly/2GHlI7m
Comments
Post a Comment