The number of new Tampa Bay area mortgages to buy a home today is surging. As cash heavy investors move out regular mortgage dependent buyers move in! But now there is this growing divide in housing between the haves and have nots. Purchase mortgage origination surged 15% annually in Q2, up 11% so for Q3 and in June we saw the largest purchase volume in 8 years! Here's the divide; the increase of purchase lending is being driven almost entirely by high credit worthy borrowers, for those below is flat to slightly down. Only 20% of loans in the last 3 months were for borrowers with a credit score below 700 and that's the lowest level in over a decade. This is the average credit score for purchase mortgages not a record high of =755 and that's only five points shy of mortgage lenders consider the top tier, which is the lowest risk which of course get's you the best rate. Now the median FICO in the U.S meaning half are above / half are below is around 720.
Fannie Mae though is instituting a new scoring model that looks more in adapting a borrowers background in the hope there it will help more people being able to qualify, we are going to have to wait and see if this works out! Tampa Bay home buyers know that's an incredible high FICO to get a loan today. We wonder too if your'e looking at two different FICO scores the idea of it being if you don't qualify on one, you may qualify on the others? Is there the chance if you don't qualify on one the other disqualifies you? So this makes it harder on borrowers... They actually average out a lot of the credit scores. There are 3 credit score agencies and they take an average of those further into someones credit history that Fannie Mae is now doing they call it " trended model" that supposedly going to help a little for those that were self employed but again they are looking for that score. And there's such sticklers on this, we've seen refinances fall apart on just 5 points!
Let's see how this new Fannie Mae FICO score rating turns out for the Tampa Bay area new home buyers...to be continued!