The “New” Credit Score

In 2005 when the real estate market was on fire, lenders were handing out sub-prime loans left and right to those who had a credit score in the mid-to-high 500's.  Everyone was doing it, but little did they know we would all pay for it later. Most lenders now require a minimum 640 credit score to qualify for an FHA loan. Those whose score is lower than 600 will have to come up with more money up front.  A credit score below 580 has more strict requirements in order to qualify. The borrower will now have to come … [Read more...]