FHA is changing the way lenders can evaluate credit, potentially opening another path to a mortgage for some homebuyers. But getting approved is only part of the equation. You still need to know whether the payment works for your budget — and whether the home itself could come with costs you aren’t expecting.
In this episode, Tim Lucas breaks down the FHA’s upcoming credit-scoring changes, including the addition of VantageScore 4.0 and FICO 10T. He explains how newer scoring models can look at things like trended credit data and reported rental payments, why they may help some borrowers with limited credit histories, and why buyers shouldn’t expect every FHA lender to adopt the new options immediately.
Tim also looks at why mortgage lending remains difficult even as borrowers take on larger payments relative to their income. An approval tells you what a lender is willing to lend, but that doesn’t necessarily mean the payment is comfortable for your household. Finally, he looks at a different affordability risk: HOAs and condo associations that haven’t saved enough for major repairs. Reserve studies, association budgets, insurance problems, and special assessments can all matter before you make an offer — and in extreme cases, those issues can affect both what you owe and whether the property is easy to sell later.
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Comment below: What’s one cost you think homebuyers overlook after they get approved?
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0:00 – Intro
0:42 – FHA credit score changes
2:51 – Tim’s Take: New credit scoring options
3:33 – Why getting a mortgage is still difficult
5:32 – Tim’s Take: Qualifying with a lower credit score
5:50 – Short break
6:11 – HOA special assessments and hidden costs
9:17 – Tim’s Take: Condo and HOA risks
9:47 – Wrapping up
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#FHALoans #CreditScores #Homebuying
