As a result of lending standards getting a tad bit tighter, the Department of Housing and Urban Development announced that it now intends to require borrowers to have scores of at least 500 to qualify for an FHA-insured mortgage loan. This is the first time that the agency will have a minimum score requirement.
While this change could affect a handful of prospective borrowers, HUD says that it shouldn’t make a significant difference since most loans issued in the second quarter of 2010 were issued to those with scores above 620, less than 1 percent went to those with scores below 580 and none were issued to those with scores below 500 (CNN Money).
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