An article from Realtor Magazine Online, reports that you don't have to have a credit score above 720 and 20% down to get a loan. Yes, loan terms have become more strict and credit underwriting a challenge. However, there are options out there for borrowers. An FHA-insured mortgage allows borrowers to put only 3% down (3.5% after Jan. 1) and some Fannie Mae and Freddie Mac loan programs with private mortgage insurance are only requiring 5% down. FHA standards are written to help people with less than desirable credit. Fannie Mae and Freddie Mac loans, on the other hand, require credit scores that are at least in the upper 600s.
http://www.realtor.org/rmodaily.nsf/pages/News2008102002
http://www.realtor.org/rmodaily.nsf/pages/News2008102002
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