You Think it's Hard to Get a Loan Now?

Just wait a few weeks!

Starting December 11, Fannie Mae will require every borrower have a loan score of at least 620. And if your down payment is less than 25%, you'll need a score of at least 660. If borrowers don't meet those minimum scores, Fannie won't buy their loans. And if the lenders can't sell the loans to Fannie, they won't make the loans to the borrowers.

But Fannie's not the only agency making life tougher for borrowers. Starting November 17, the FHA will change its "streamline refinance" program to be a lot less "streamline".

This program is for homeowners who already have FHA-insured mortgages. In the past, these loans did not require credit checks or employment verification. And if the refinanced amount did not exceed the original loan amount, an appraisal was not needed.

Come mid-November, borrowers will have to verify that they have paying jobs and will have their credit scores checked. And if the new loan amount exceeds the existing balance (as opposed to the original loan amount) an appraisal will be required.

Say, for example, a couple of years ago you got an FHA insured loan for $100,000. Now you owe $80,000. If you want to refinance for an amount over $80,000, you'll need an appraisal. But remember there are closing costs involved in getting a loan. So, unless you have the cash to pay the closing costs, you'll need that appraisal to roll those costs into the new loan amount.