Wednesday, April 9, 2008

Fannie Mae changes loan guidlines for those with foreclosures on their credit

Fannie Mae, The mother of the secondary mortgage market is making changes to help reduce future foreclosures. Among these changes are larger required down payments for Fannie Mae loans, and more difficult terms for those with past foreclosures to get mortgage loan financing.

New guidelines effective June 1, 2008, require that borrowers are free from any foreclosure for atleast 5 years. After this five year period, the borrower who has perviously foreclosed must have a minimum down payment of ten percent and a minimum FICO credit score of 680. Fannie Mae Borrowers who have not had foreclosures on their credit history, are only required to have a 580 credit score.

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