Higher Credit Scores is the Norm Even at FHA

Figures compiled by the Department of Housing and Urban Development show that the average credit score on an FHA-backed single-family loan is now at 700.

Just 3.3% of FHA-insured loans originated in the third quarter went to borrowers with 580-619 credit scores. Back in 2009, nearly 20% of FHA borrowers had credit scores in the 580-619 range.

Lenders have many reasons for tightening their underwriting and credit standards: they are under heightened scrutiny because of the housing bust, secondary market buyers are slamming them with buying back loans they have originated that are considered "high risk", and there are multiple investigations into their servicing and lending practices.

How can you know if your credit will be a concern in getting qualified for a home loan? Please contact us at 503-385-1791 (Equity Loans) or visit us at www.equityloansoregon.com.