This is a YouTube video titled "Ep 80 🚨 New Credit Score Update on Conventional Loans 🚨" containing a single-speaker explanation about a new Fannie Mae rule effective September 18th that changes how co-borrowers' credit scores are averaged for mortgage loan applications, potentially benefiting homebuyers by enabling more conventional financing options. The content was created in September 2021.
Hey guys, Pretty cool new rule coming out in a couple of weeks. So historically, in the mortgage world, if there were co borrowers on a loan application, you would have to go off the lower person score for the entire loan. So let's say somebody has a 700 and their partner has a 600. That whole loan is a 600 credit score. That would probably draw them to FHA financing, which isn't quite as advantageous in today's market. Now, with Fannie Mae's new rule coming out on September 18, they would average those scores out, potentially opening up conventional financing for that that situation. So now it'd be an average of 650 in that scenario. I just gave. Comes out September 18th and could be a big factor for a lot of people buying houses this day.
