Good read on changes in lending standardsDean Foust
If you’re one of the few who are actually looking to buy a house, and are wondering how amid all the turmoil credit standards are changing, real-estate columnist Kenneth Harney has a informative article in The Washington Post detailing the general changes. To qualify for a conforming loan, many lenders previously required a “FICO score” of only 620. (What’s a FICO score? Click here for an explanation.) No more. Now they’re demanding a FICO score of 680, or even 700. If your FICO score is below those higher numbers, then you have to get a “subprime” mortgage and…well, good luck getting one of those because most institutional investors won’t touch a subprime loan these days.
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