How credit score influence home loans?

[perfectionj]

How credit score influence home loans?

[AFFA]

I wish to inform you that credit score influences home loan in the sense that it shows credit worthiness of a person. A person who is having weak credit report may get money on high rate of interest or lessor amount of loan because there are chances of default by a person.

AFF

[Friend In Court]

Lenders set a minimum standard of credit score as one of the factors in approving a home loan. A minimum score for FHA insured loans is 620 with many lenders requiring more before they even consider the other factors; income to debt ratio, length of time on the job (steadiness of income).

Presently lenders have been very tight approving home loans, turning down applicants with good credit scores and history. This has contibuted to the malaise in the housing market with many portential borrowers who historically have been considered good risks being turned down.

Credit scores are also used by insurance companies, like for auto insurance. By some employers, too. That latter can be quite unfair for if one has been laid off, their job terminated as many million have in this country, of course, their once good credit will be affected.

We have to live for the present with the tyranny of credit scores.