Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Lending for home loans and refinances is easing up. But will it cross the line into dangerous and lax territory again?
After the financial crisis and real estate bust, the pendulum swung from what I call “pulse lending” (if you have a pulse, you get a loan!) to the tightest possible standards. We went through a full freeze for borrowers, even those who were trying to owner occupy, from about late 2007 through early 2010.
But today, that spigot is opening a bit more. One-third of all new mortgage borrowers today have credit scores on the FICO scale of 699 or below, according to respected real estate writer Kenneth Harney. And the average score for Fannie Mae/Freddie Mac refis is down from 746 to 737 in just a month.
Mortgage lending is getting easier again. But I want to point out, we’re not repeating history. We’re not going back to pulse lending. Loans aren’t easy breezy to get, they’re just more rational now when it comes to lending decisions.
So if you thought you were redlined because of your credit worthiness, there’s hope for you. There’s hope for you even if you did a short sale during the real estate bust.
For further reading:
This post was last modified on March 22, 2017 3:17 pm
If you've been considering signing up for one of the Chase Sapphire credit cards, now…
The costs associated with owning a home go way beyond the amount on the mortgage. …
Inflation hits people on a fixed income the hardest. Say you're retired. You're living off…
Deciding to save and invest are great habits. But once you check that box, your…
If you're considering subscribing to Fubo, you need to be comfortable missing out on some…
Are you looking for a way to earn 2% back on every purchase you make…