Credit scores from home buyers applying for a FHA home loan have been dropping. However requirements for conventional home loans (including those backed by Fannie Mae and Freddie Mac) have remained constant, Scores averaged 755 for qualified applicants. Credit scores can range from 300-850 with higher scores considered more favorable.

A credit score isn't the sole criteria for determining loan eligibility but numbers show that the average score required to qualify is currently significantly higher than in the past.

Experts believe that stringent credit requirements is making it difficult for many Americans including minorities to buy a home. Home ownership currently stands at 64.8 %; the lowest I has been since the mid 90. Mortgage lenders hesitancy to ease on lending requirements may stem from fear that Fannie Mae and Freddie Mac will force them to buy loans from consumers with low credit scores.

Lenders have been focused on delivering clean loans as a result of the subprime crisis. Fannie Mae and Freddie Mac have publicly stated that they do not require scores to average anywhere near 755. Scores over 740 tend to receive the lower interest fees. Anthony Hsieh, founder and chief executive of LoanDepot Home Loans says "We have no control over credit scores," he said. "Until [Fannie and Freddie] put out a directive telling us to provide credit to more Americans, our hands are tied."