LenderStreet's columnists (that's us over there) join forces with lenders in your area to keep tabs on the mortgage market. Together we offer timely insights toward a positive loan experience.
Nothing compares to the confusion that occurs during the mortgage process, especially if you have never purchased a home. I am a very prepared person when it comes to finances, but even I learned some extremely valuable information.
Imagine you’ve had your house up for sale for two years. You bought a new house before you could sell your old home and you’re paying two mortgages. Finally, two prospective buyers come along. One buyer, a first-time homebuyer is waiting for approval on a mortgage loan; the other is a cash buyer.
Which way are you going to go?
The Federal Housing Administration has set credit score limits for the first time for homebuyers, which will be effective Oct. 4.
In the past, the credit score requirements for any FHA-backed loans have been at the discretion of the lender. That will still be the case for the most part; however, the FHA has initiated some of its own limits.