With lower interest rates, reduced home prices and government backed homebuyer tax credits, now would seem to be a great time to buy a home.
However, it is getting much more difficult to qualify for a home loan these days and even borrowers that are bringing in a 20% down payment will now have to have good credit.
Fannie Mae, from the secondary mortgage market, is now requiring borrowers who have a 20% down payment to also have a 620 credit score up from a previous cutoff of 580.
If you are planning to purchase a home within the next year or so and your credit is not yet up to par, there are steps you can take to repair your credit now.
