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2/1/2010
| Q&A with Glenn Reynolds Q: The Federal Housing Administration is proposing several changes to the requirements for FHA-backed home loans. FHA is going to require that borrowers with credit scores below 580 put 10 percent or more down on the home. What effect will that have, or not have, on the metro-area market and why or why not? A: The effect in Oklahoma will be small at this time. The reason is mortgage lenders on their own implemented a minimum credit score of 620 over a year ago when the mortgage troubles began. The quality of the home loans we are making at this time is quite good even without this change. I do not know of any mortgage lenders in Oklahoma that have been making ... mortgage loans of any type with credit scores below 620. There may be some on a case-by-case basis but there are few, if any, in Oklahoma regardless of the new 10 percent down payment requirement. This may have a bigger impact on a national level in the states that have been much harder hit and where there have been some shady FHA operators taking advantage of FHA programs; hopefully this will put a stop to that. I think Oklahomans are getting tired of paying for the sins of others. Read more. |
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