As you know, we sent out an email on September 28 stating the following:
â€œThere are five major servicers in the Industry (along with a number of minor players). Typically in our market and the time we are in, the five major players set the rules and the rest follow suit. In the past few months two of the major servicers have increased the minimum FHA credit score from 620 to 640. Bank of America (obviously one of the five) announced that they, too, will increase to a minimum of 640 effective 10/4/2010. We have two of the major servicers still holding at 620 but our sources are telling us that they could go to 640 within the next few weeks.â€
Well- it has happened! The last two major servicers announced this morning and 640 is NOW the new 620 for FHA loans effective today.
Even with this news, it is still now an incredible time to purchase a home. With historically low interest rates, 640+ credit scores allowed, and great inventory- NOW is the time to purchase! If your score is under 640, check ou our Free DIY Credit Repair.