Less Down, Higher Credit Scores Required

If you buying a home w/little down, you better have a good credit score, otherwise it’s very hard to get loans approved with little down.  If you have a combo loan where u need a second loan, the second loan has implemented higher credit score requirements or if you choose to have all in one loan, and you have less than 20% down, you will have mortgage insurance.   Loans with Mortgage Insurance for all in one inclusive loan also have increased their credit score requirements. 

For example some loans that have Mortgage Insurance requires a credit score of 680, meaning if you are buying a house less than 20% down, then  you maybe required to have mortgage insurance, therefore if you need mortgage insurance with a particular lender that particular lender may require a 680 credit score to get the loan through the system.

So credit score is now becoming very important to get your mortgage loan approved. 

By Tony Cole 

Tags: Loan_Updates

Updated on Monday, Jul 14 2008 01:23 PM PDT

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