Almost All Lenders Now Require 620 Credit Score For FHA and VA Streamline Programs

July 10th, 2009 | Category: FHA

TBW Announces They Now Require Minimum of 620 Credit Score For FHA/VA Streamline Refinances

Yesterday, an announcement was made by the last large lender (that we know of at least) in the US who used to not require a minimum credit score on FHA or VA loans that a minimum 620 credit score is now called for on all FHA streamline refinance loans. The announcement from lender Taylor, Bean and Whitaker regarding their minimum of 620 credit score requirement means all major US lenders now require at least a 620 credit score.

Minimum Credit Score Announcement Details

An excerpt from yesterdays announcement:

FHA Streamlines (credit and non-credit qualifying) and VA IRRRL’s with Credit Scores below 620 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in that category locked on and after July 13, 2009 will require a minimum FICO of 620. Clients will be needed to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO.

Any Conventional, FHA (including Streamline Refinance), or VA (including IRRRL) loan that exceeds $417,000 with a Credit Scores below 660 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in that category locked on and after July 13, 2009 will require a minimum FICO of 660.

Clients will be needed to obtain a 3 Repository credit report and utilize the

standard method of determining qualifying FICO. In addition, any previously announced minimum Credit Score requirements that TB&W has put into place, that did not have a specified Closing period, will be called for to be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered within 10 days after closing. Therefore, any loan, regardless of whether it may be locked, registered or approved, that has a qualifying credit score below 620 (with the exception of those loans that have specified higher FICO requirements) must CLOSE (Note Date) no later than September 15, 2009.

TB&W will work as diligently as possible to accommodate all loans in the pipeline. We will be unable to grant any extensions or exceptions to these requirements.

What that Really Means

Remember, according to FHA/VA guidelines, the FHA/VA Streamline programs don’t officially require a minimum credit score - but now virtually all lenders require a minimum of a 620 credit score. TB&W was the last major US lender who was not requiring that you had at least a 620 minimum credit score in order to participate in the FHA/VA streamline refinance programs. There may still be lenders who are able to do a FHA/VA streamline with no credit score, but it will be more difficult to find them.

If you have a credit score below 620 and are interested in possibly refinancing your FHA or VA loan, it just became very difficult, whether not impossible to get done.

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