Borrowers With Sub-660 Credit Scores

Borrowers With Sub-660 Credit Scores

 Face Big Hurdles

While standards for FHA loans have stayed about the same as they were in 2006, banks claim, borrowers with credit scores lower than 660 are facing a tougher time in getting approved, according to a new survey by the Federal Reserve of 68 domestic banks and 23 U.S. branches and agencies of foreign banks.

The majority of the domestic banks surveyed said that their lending standards for approving an application for a Federal Housing Administration-backed mortgages are about the same as they were in 2006. But borrowers with credit scores lower than 660 may have a more difficult time getting approval, according to the Senior Loan Officer Opinion Survey on bank lending practices. Read more ....