Who Can't Get a Mortgage Now?

Who Can't Get a Mortgage Now?

 

For the average American looking for a home loan, the crisis in the subprime mortgage market may actually be good news.

 

Not only have home valuations come down, but interest rates are still historically low.  In addition, tightened lending standards stemming from the subprime crisis likely means fewer buyers, pushing down home prices.

 

The one catch is: You have to be a buyer with good credit, a low debt to income ratio, a healthy down payment, verifiable income, and looking to finance less than $417,000 (the cutoff for so-called jumbo loans).

 

If you're among the 10 percent of people with credit scores below 620 who need a subprime mortgage, things could get tricky.

 

If you're not sure whether you would qualify for a mortgage under today's tougher standards, or what your credit score might be, contact us or leave a comment below.  We'll get back to you with answers.