FHA Streamline Credit Score Requirements Continue to Rise

In early May, 2009, we got word that Chase Correspondent Lending (Chase Bank) is raising their minimum credit score requirements for FHA Streamline Refinances. While this is only one of many banks lending on this program, there tends to be a trickle-down effect. Chase is one of the largest-volume FHA Lenders in the nation. Most of the time, we see other banks tweak their guidelines to fall in line with the perceived leaders. In a nutshell, we can likely expect other banks to fall in line rapidly.

Essentially, Chase’s new guidelines for FHA Streamline Refinances will require full credit qualification for borrowers with credit scores under 660. The minimum credit score with Chase remains at 620. Borrowers with credit scores between 620 and 659 will be required to provide full income, asset and credit documentation. There will still be no appraisal requirement (provided the new mortgage amount does not exceed the original loan amount.) Borrower’s with credit scores above 660 will not be required to provide income, asset or credit documentation on an FHA streamline refinance.

As of now, Chase is the only lender to have adopted these new guidelines. I have access to many different banks and mortgage programs, so the impact of these changes has not been felt yet. I will keep this blog updated to reflect changes as they happen.

Author: Matt Blasses

Matt is a mortgage specialist for Mortgage Now in Farmington, Michigan. He created blasses.com as a home for his mortgage advice blog. He can be reached at 248-474-8470, Ext. 320, or contact him via his web form. Matt originates home mortgages in California, Colorado, Florida, Georgia, Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, Ohio, Pennsylvania, South Carolina, Tennessee, Texas and Washington