Sounds good on the surface but in reality, it's nothing more than just lowering their previous In-house standards put in place after the financial collapse, to conforming now with existing FHA loan requirements.
The bottom line is; You're still going to need a high FICO score and a bigger down payment to get a excellent mortgage interest rate. One of the things they fail to mention in this announcement!!
FICOs and FHA: 2 big lenders loosen up
Read more at www.inman.com
With no fanfare or public announcements, two of the largest FHA-approved lenders have backed off their controversial "overlay" requirements on FICO scores (lender overlays are qualification requirements that can be more stringent than FHA's own requirements).