Everybody needs to Move it, Move it, Move it!!!
'Cause minimum credit scores are going UP!
I'm not talking about folks having BAD credit and having trouble buying a home... but I have a borrower right now that has a 618 score - NO LATE PAYMENTS. He has 20 years of credit history...
He owes Best Buy and Macy's and Room to Go (And Amex, and Bof A for 2 cars, and Wachovia for a mortgage or 2). NO LATES. But his middle score is 618.
Well, according to our friends at Wells Fargo - pretty soon this borrower (who makes over 150K a year) will not QUALIFY to purchase a home! Even though he has $98,000 liquid. His ratios are 18 / 31.
SunTrust has ALREADY put this rule into play - and now Wells. PLUS, the pricing for these borrowers (at other places) is already AWFUL!
This is SIGNIFICANT. This is not just for Conventional loans. I'm talking USDA, VA, FHA -
NOBODY RIDES if their score is less than 620!
(at least not if they are getting their loan with SunTrust or Wells Fargo!)
I know it won't make any difference, but I still called my Congressmen yesterday and let them know this is a HUGE part of the homebuying market that is now EXCLUDED from purchasing a home! My concern is that we are going too far in pulling guildelines so tight, and with Suntrust, Wells Fargo (and I understand Countrywide) moving to this tighter standard... well, it is an over kill in my opinion.