JP Morgan Chase, the nation’s largest lender by assets, announced that the majority of new customers applying for a mortgage will need a minimum credit score of 700 and a down payment of at least 20% of the home’s value.
Chase said it was also motivated to tighten its lending standards in response to the growing number of refinancing requests that it’s been fielding in recent weeks as mortgage rates have dipped to new lows, prompting homeowners to rush in to lower their monthly payments.
Over the past two weeks, other banks have enacted stricter eligibility requirements. Some are raising credit score minimums and others are completely halting jumbo mortgages. The tighter standards are making it more difficult for borrowers to take advantage of the lowest mortgage rates in history.
