Sept. 13, 2021
Fannie Mae is changing the way credit scores are calculated on its loans to allow more people to qualify. Lenders will now be averaging the median score of the borrowers, as opposed to using the lower of the borrowers' median scores as previously required.
Borrower credit scores: 590, 619, 648
Co-borrower credit scores: 661, 693, 693
The old guidelines required to use the 619 as the determining score. Now we will be able to use 656 (average of 693 & 619).
This change should allow many more borrowers to qualify for Fannie Mae mortgages.
HOWEVER interest rates and mortgage insurance will continue to use the lower of the median credit scores.
See a full list of Fannie Changes set for 9/18/2021 by clicking this link
Thinking of Buying? To start the mortgage pre-approval process CLICK HERE to answer 6 quick questions, or call The Heyward Homes Team directly at (240) 203-8991.