How Strict Has Mortgage Lending Become?
There is a general belief today that lending requirements have become so restrictive that many lower-credit borrowers are dropping out of the mortgage market.
The Home Mortgage Disclosure Act data discloses that 33% of all applicants in 2015 were in the lower-credit category compared to 62% in 2006 and 50% in 2000 – when the market was judged to be balanced.
The decline in lower-credit applicants is clearly problematic and a symptom of an overly-tight mortgage market. Are would-be applicants holding back because they are afraid they might not qualify? Or for some other reason, such as the condition of the property?
A hard money loan might be the answer for those who have less than stellar credit and would not qualify for a conventional loan. This option can provide an avenue to enter the real estate market when it appears that all hope has been lost.
Here at Sun Pacific Mortgage make it our goal to find a way to make home ownership possible when chances look slim to none. Don’t give up on your dream of home ownership. Please call us at 707-523-2099 and see how we can help you with a hard money loan.