There are two major number categories being discussed in the mortgage industry right now – the FICO score and downpayment percentage for FHA loans. The Federal Housing Administration commissioner is requesting that the nation’s largest mortgage loan originators to loosen their underwriting standards. The intent is to make it possible for more minorities to qualify for government-backed single-family loans.

In 2008, many top ranked lenders established a minimum credit score of 620 when subprime borrowers refinanced into FHA loans. Though this move reduced the loan defaults, and improved the performance of FHA loans overall, the commissioner is now suggesting that lenders reconsider the FICO scores. His reasoning is that the “difference in approval rates for African-Americans and Latino borrowers between 580 and 620 is significant.”

Another number that is being considered is the downpayment percentage. Congress is pressuring FHA to increase the current 3.5% downpayment requirement to 5%. The belief is that the increase would negatively impact the opportunity for “good families” to buy a home.

The purchase of a home is most often the largest investment you will make, so be sure to work with an established, trusted mortgage lender.