Good Monday morning. This is your weekly mortgage update and welcome to the month of May. It’s May 4th. My name is Tom Heath with the Heath Team at Nova Home Loans. And I’m coming to you with some good news today. We have noticed in the past that credit scores in the last six weeks have increased, requirements of increased for some of the loan programs like FHA and VA.
Well, I’m happy to tell you that Nova has made a decision to start to reduce those requirements. So we had moved to a 640 credit score required on FHA / VA government insured loans and that is now moving back to a 620 we believe there is a market for those loans in the secondary market and that investors are going to accept those. So we’re going to continue to monitor that situation and it is fluid. So hopefully we will get back to some of the lower credit score programs to help even more borrowers.
And speaking of helping more borrowers., NOVA has just rolled out a new loan program, something that’s been around since 1992 very few lenders have been able to offer it. It’s called a Section 184 tribal loan and the intent was that as long as one of the occupant borrowers one of the people borrowing money and living in the home are a member of a federally recognized tribe, they can qualify for this program.
It typically offers better rates a little bit more expanded criteria, lower mortgage insurance and its overall a good program to explore. There have been very few lenders across the country that have adopted this program, again because of finding buyers for those loans in the secondary market, Nova has done such and we are now able to offer these so I’ll have more details about this specific Loan program coming out for you to do a little research on but the good news is things are getting a little bit better. So it’s been a rough six to eight weeks. And maybe we are starting to see a little bit of a change as we get comfortable with what’s happening in the market around us.
Well, my name is Tom Heath with the Heath Team at Nova Home Loans. If you have any questions about today’s video or anything mortgage-related, feel free to give me a call. Shoot me an email and always check out our website TheHeathTeam.com for updated information and a little lighter side of the mortgage industry with some humor that we have on there. Hope you have a great week. We’ll talk to you next Monday!