Credit Score Requirements on Refis are Dissolved by Freddie Mac

Freddie Mac has rescinded its 620 minimum credit score for those seeking to refinance their homes so long as the home owner has equity in excess of 20 percent.

The move comes after Freddie Mac and Fannie Mae were told by Federal Housing Finance Agency in October to allow more potential borrowers to participate in low interest rates provided by the Home Affordable Refinance Program.

The actions taken are in an effort to help home owners keep up on payments whose homes are underwater with Freddie Mac and Fannie Mae servicing four million such mortgages.

The new provisions will affect any refis that are settled on Jan. 5 or after. Also, borrowers with high levels of equity will have new opportunities to refinance if they should choose after senators from California and Georgia authored a letter to President Obama seeking to expand on the changes to include high equity borrowers.

Refis peaked last September at 263,000, the highest since March of the same year.

Many home owners with homes underwater have sought or wanted to refinance but were unable to secure them because of poor credit histories, which has led to a sharp rise in consumers seeking credit repair assistance to help them qualify and get their financial lives back on track.

Image source

Similar Posts:

• Low Rates for Mortgages But Lower Approval Rates is Reality
• Minimum Wage Jobs Hurting Credit Scores
• Debt Ceiling Issues Necessitate Credit Repair Work
• Lower Credit Consumers Are Target of Credit Card Providers
• Las Vegas Man Found Guilty of Credit Repair Scams