You Don’t Need a Stellar Credit Score to Qualify for a Mortgage
Washington Post, June 22, 2016–Harney, Kenneth R.
Mike Fratantoni, chief economist for the Mortgage Bankers Association, says the mortgage market overall is strong, rejection rates have not increased and the high credit-score averages on Fannie-Freddie loans reflect an important shift underway. Premium reductions at FHA, coupled with premium increases by private mortgage insurers, have driven more sub-700 FICO buyers to FHA and away from Fannie and Freddie, he suggests. Nearly 40 percent of new-purchase loans at FHA last month had scores between 650 and 699, and 20 percent were between 600 and 649.
