More bad news about your loan requirements came today.Am I not the most upbeat person lately!FNMA and FreddieMac have changed the FICO requirements for all loans over 70% LTV, and not for the better. If your loan amount is great than 70% of the value of your home, there will be charges added for your FICO score or lack thereof.

     So, this is what I know:

Fico scores better than 680 no charge, 660-679 cost of .75, 640-659 cost of 1.25, 620-639 cost of 1.75, Under 620 cost of 2%

     I must supply an example to my readers.If you loan amount is $100,000 and your house is worth $135,000, your loan to value is 74%. You have a credit score of 648. There will be a cost of 1.25% premium for this combo. Therefore, you will pay $1,250 in points to the lender at the time of closing or you can pay a higher interest rate.

     If you go through a broker/banker they will certainly be charging you a higher rate and passing some of the cost onto you. Remember brokers get paid a premium from the lenders. The higher your interest rate, the more the broker makes. Of course it will be your fault and you should be lucky to get the loan. Do your homework.

-Dale Siegel