| Because of the recent foreclosure crisis, new credit | | | | mortgages? Banks. |
| standards for first-time home buyers (any home buyer | | | | Zero Down Home Loans: Get 100% Financing with a |
| really) have been put into place. Depending on which | | | | 580 or 620 Credit Score? |
| side of the fence you're on, it's either a good thing, or a | | | | FICO scores have to be a lot higher than they used to |
| hindrance to buying a home. | | | | be to qualify for a home loan. It used to be that a |
| This article will discuss FICO scores and mortgage | | | | prospective homeowner could qualify for 100% |
| qualifications. | | | | financing and a conventional mortgage with a 620 |
| Following is a look back at what credit scores used to | | | | FICO score in most cases. |
| have to be to qualify for a mortgage, and what they | | | | In a lot of cases in the past, a prospective homeowner |
| need to be now. | | | | could qualify for 100% financing (zero down home |
| First-Time Home Buyer Mortgage Qualifications: A | | | | loans) with a credit score as low as 580. It would be a |
| Look Back at Old FICO Standards | | | | subprime mortgage, but the home buyer wouldn't have |
| On a recent news cast, the newscaster blared from | | | | had to come to the table with any money nonetheless. |
| the television that some credit card companies were | | | | The New Reality: What Your FICO Score Need to Be |
| considering making 740 the FICO score you had to | | | | to Qualify for Zero Down Home Loans |
| have to qualify for a credit card. | | | | These days, mortgage lenders have raised the bar on |
| In the past, if you were dead or alive, you could get a | | | | what your FICO score needs to be to get a |
| credit card. Family pets have been known to receive | | | | convention loan with a good interest rate. |
| credit cards in the mail as well. Really, there have been | | | | If you do any research online, you'll see that most |
| instances of dead people and pets being issued credit | | | | websites and blogs still quote a 620 to 640 as the |
| cards! This is how free willing credit card companies | | | | FICO score needed. That's a bit outdated. |
| were when extending credit. Now, Bill Gates might | | | | Because of the foreclosure crisis, recent credit |
| have a problem qualifying for one. | | | | standards dictate that you need to have FICO scores |
| So, what does this have to do with getting a | | | | in the neighborhood of 750-780 to qualify for a |
| mortgage? Well, who extends credit for credit cards? | | | | conventional mortgage with the lowest interest rates. |
| Banks. And, who extends credit (loans) for | | | | |