New FHFA rule penalizes those with good credit and rewards those with bad credit

Homebuyers with Good credit 720+ are now being penalized and those with below 680👇🏼 scores are being rewarded. The FHFA the government entity that controls Fannie Mae & Freddie Mac recently made this change.
Does this mean you get a lower interest rate if you have bad credit? NO but it does mean you are getting a large discount now compared those with a larger down payment and good credit! If you have good credit your rate will still be lower.
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