How the Recent Credit Score Change Affects Homebuyers in Tracy, CA

By Ron & Eva Cedillo

Ron and Eva Cedillo Broker/Owners of Home Buyers Realty that has 20 Top Producing Agents selling over 400 homes per year. They personally sell over 150 homes per year with their aggressive marketing campaigns that net sellers Top Dollar Fast.

Is your credit score keeping you from buying your dream home? If you’re worried that your credit score is too low to get a mortgage, you’re not alone. Many potential homebuyers feel stuck in the same situation.

But here’s the good news: Fannie Mae, the organization that backs many mortgages, just made a big change that could help more people qualify for a loan, even with a lower credit score.

Let’s dive into what this means for you and how it could open the door to homeownership.

Fannie Mae’s new credit score policy. Fannie Mae’s new rule means buyers with lower credit scores can now qualify for a home loan more easily. For years, homebuyers needed a score of at least 620 to get a loan through Fannie Mae. If your score was lower, you were stuck with FHA loans that often came with higher fees.

But now, this rule has changed, giving more buyers access to affordable mortgage options. This is huge news for anyone who has been struggling with credit issues but still dreams of owning a home.

How this affects you as a homebuyer. If you’ve been thinking about buying a home but were held back by your credit score, this change could be just what you needed. It means you may now have a better chance to qualify for a traditional Fannie Mae loan, which could save you money on things like interest rates and mortgage insurance.

With more homebuyers able to qualify for loans, the market is opening up, meaning more options for you as a buyer. Plus, sellers may have more people interested in their homes, which could lead to more competition, ultimately helping to keep the housing market moving.

What does this mean for sellers? For sellers, this change is also great news. More buyers in the market means more potential offers on their homes. If you’re a seller in today’s market, this could mean a quicker sale and possibly even a better price.

As more buyers are able to get approved for loans, homes may get more attention, and offers could come in faster. Homeownership is something that benefits everyone, not just buyers, and this new policy encourages that process.