Why buy now? Why wait to buy a home?
Reason #2: Reduced credit score requirements for borrowers
Is your credit score throwing you a curve ball causing you to strike out of the home buying
game? Reason #2 is the perfect straight pitch you have been waiting for to score that home
buying home run.
Credit score requirements for borrowers taking out mortgages are easing. In March of 2013
minimum credit scores on purchase mortgages stood at 761. In March of this year credit scores
on purchase mortgages stood at 755. Credit scores for FHA loans dropped even lower to 684,
compared to 696 in 2013, according to data from Ellie Mae, a mortgage-software provider.
What brought on this scoring change? A more purchase-focused market says Vickee Adams,
Vice President of external communications for Wells Fargo Home Lending. She explains,
“Having a broader credit score range will serve to attract more borrowers into the market.”
Why has the focus shifted to attract more borrowers? The refinancing demand has dropped
a great deal and is expected to continue to drop. As a result, banks are trying to find ways to
boost lending to homeowners; lower credit score minimums will hopefully provide more hits to
lending.
What are you waiting for?
Keep your eye on us and we will pitch you the reasons, why buying now can help you score.