How Covid-19 is affecting lending requirements? A Summary of What You Need to Know

Below are some of the changes in lending requirements you should be aware of if you are planning to apply for a home loan in the near future.

The minimum credit score for FHA loans has increased. There are some lenders who are able to approve loans with a score of 620 or maybe lower but most lenders are requiring a minimum credit score of 640 and a few lenders are requiring a minimum score of 700.

Some lenders are requiring a final verification of employment be completed three days prior to closing whereas previously it was around ten days. This can cause delays in closing if your employer is not easily accessible or does not respond promptly.

In most cases the minimum downpayment for a jumbo loan (any loan over $484,350 in most areas of the country) is now 20%.

The minimum downpayment for an investment property in most cases is 20%.

Please contact me if you have any questions and I or one of my preferred lender partners will be happy to assist you!

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