Credit Score Impact on FHA Streamline (loan, approved, credit report, refinance)

[cblogger]

It was my understanding that only the following was necessary for a FHA Streamline:

• mortgage to be refinanced must already be FHA insured.
• The mortgage to be refinanced should be current (not delinquent).
• The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
• No cash may be taken out on mortgages refinanced using the streamline refinance process

Furthermore, no appraisal or credit report is necessary.

The broker that sold me my original FHA loan called me today to streamline at 5% (I'm presently financed at 6% with Wells Fargo). When he ran my credit it was under 620 and now he can't streamline me. He said he got some memo two weeks ago about a mininum credit score now.

Does anyone have any suggestions? Is this the case now across the board?

[Daddys///M3]

It is not the case across the board. Is your broker approved with Taylor Bean and Whitaker? They do not require credit scores on FHA streamlines. I'm sure that there are a couple of others out there as well.

[cblogger]

Originally Posted by Daddys///M3

It is not the case across the board. Is your broker approved with Taylor Bean and Whitaker? They do not require credit scores on FHA streamlines. I'm sure that there are a couple of others out there as well.

thanks Daddys...

[SmartMoney]

Don't wait too long......the no score/low score lenders are flying the coop quickly.

[cblogger]

Originally Posted by SmartMoney

Don't wait too long......the no score/low score lenders are flying the coop quickly.

You're right...I just made it with Wells Fargo...but this won't last long...

FHA type loans are going to be harder to get if more lenders require higher scores...or they're start nailing FHA applicants ON MORE POINTS...which goes back to gouging philosophy of the subprime mess.