Good credit no longer a benefit for homebuyers under new rule.

1 min read
Source: WJW FOX 8 News Cleveland
Good credit no longer a benefit for homebuyers under new rule.
Photo: WJW FOX 8 News Cleveland
TL;DR

Homebuyers with good credit scores of 680 or higher will have to pay higher mortgage rates and fees to subsidize people with riskier credit ratings, as part of the Federal Housing Finance Agency's push for affordable housing. The new federal rule enforced by the Biden administration will make it so that people looking to buy a home with a credit score of 680 or higher will have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000. The new rule, which goes into effect on May 1, will affect mortgages from private banks across the nation.

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