Paying the minimum balance only on your credit cards, even if it’s on time, may not be enough anymore to get the best home loans.
That’s because starting in June, Fannie Mae FNMA, +0.56% , one of the biggest government-sponsored buyers of mortgages, says when it comes to buying home loans it will now favor borrowers who are making efforts to pay down their credit cards, rather than just pay the monthly minimums. Fannie Mae’s counterpart, Freddie Mac FMCC, -0.63% may also follow suit.
