Lenders continue to lower FICO requirements for new homebuyers
Lenders continue to lower FICO requirements for new homebuyers : The average agency FICO score for banks is high at 745, compared to 713 at nonbank lending institutions. Both show FICO requirements are on the way down, but it's more pronounced at the nonbanks. Here's why. The nation’s major banks are continuing to walk away from FHA-backed mortgages, according to the Urban Institute’s Housing Finance Policy Center February Chartbook . And not only are nonbanks stepping in to take over the space, overall, they are continuing to ease access to credit. “Bank and nonbank FICO scores reveal that nonbanks brought the Agency median FICO down four points to 726 between November 2018 and January 2019,” the Urban Institute said in an email. The average agency FICO score for banks is high at 745, compared to 713 at nonbank lending institutions. Both show FICO requirements on the way down, but it's more pronounced at the nonbanks. Why? Nonbanks are also more accommodating for i...