For those in the market to purchase a property the job of doing so just got more difficult. Due to the financial meltdown and poor loans given out in the past, Fannie Mae and Freddie Mac have tightened their purse strings yet again.
Starting Nov. 1 or Dec. 12, depending on the type of loan, anybody with a credit score of less than 620 will have a more difficult time getting a mortgage. Fannie Mae is tightening lending standards to the 620 benchmark, even for loans backed by a federal agency such as the Federal Housing Administration or Veterans Affairs. Currently the lowest credit score is 620 for a loan, but rumor has it that Fannie and Freddie will be increasing that number to 640. Stay tuned for more on what is to come.Email This Post To a Friend.