Last Lender Makes Announcement of Minimum 620 Credit Score
For some time, there has not been a minimum credit score requirement for South Carolina FHA streamline refinance loans. Yesterday, it was announced by the last major lender that now they are requiring a minimum of a 620 credit score on all South Carolina FHA streamline refinance loans. The major announcement came from TB&W that they were moving their minimum credit score requirement to 620 for all South Carolina FHA streamline mortgage refinances.
Credit Score Announcement Details
FHA Streamlines (credit and non-credit qualifying) and VA IRRRL’s with Credit Scores below 620 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in this category locked on and after July 13, 2009 will require a minimum FICO of 620.
Clients will be required to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO. Any Conventional, FHA (including Streamline Refinance), or VA (including IRRRL) loan that exceeds $417,000 with a Credit Scores below 660 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in this category locked on and after July 13, 2009 will require a minimum FICO of 660.
Clients will be required to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO. In addition, any previously announced minimum Credit Score requirements that TB&W has put into place, that did not have a specified Closing date, will be required to be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered within 10 days after closing. Therefore, any loan, regardless of whether it may be locked, registered or approved, that has a qualifying credit score below 620 (with the exception of those loans that have specified higher FICO requirements) must CLOSE (Note Date) no later than September 15, 2009.
TB&W will continue to allow non-traditional credit for those borrowers with no useable credit for the loan programs that allow the use of such credit in accordance with published guidelines. TB&W is fully aware that these limitations may result in the inability for a particular loan to meet these specified deadlines. TB&W will work as diligently as possible to accommodate all loans in the pipeline. We will be unable to grant any extensions or exceptions to these requirements.
South Carolina FHA Streamline Refinance: What This Announcement Means
Remember, according to FHA guidelines, the FHA Streamline refinance program doesn’t officially require a minimum credit score – but now virtually all lenders require a minimum of a 620 credit score. Taylor, Bean and Whittaker was the last major US lender to not require a minimum credit score. It is possible that there are still smaller lenders who can offer the South Carolina FHA refinance streamline loan with no minimum credit score requirement, but don’t expect it to be easy to find them.
