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Tough Requirements for Mortgage Loans
from: Mortage & Debt FactsIf you live in California or Florida, it’s is definitely harder to qualify for mortgage loans in these areas than other areas that have been less affected by the housing slump.
The same “no money down deals” that used to be so popular in these states are now gone. In their place, you will find some that houses in these areas will require at least a 10% down payment, if not more. This may seem hugely unfair for some when they realize the same is not true for other areas of the United States where the housing market has not declined as much. In those areas, you can still get mortgage loans with only 5% down.
Your Credit Score Is More Important
Credit score requirements for mortgage loans have risen. A good score will have to be above 720, which is fairly high. If you don’t meet the new, more stringent credit score requirements, the bank may still offer you a loan – after you pay substantial upfront fees.
As if that weren’t enough, you will be offered a higher interest rate to compensate for any deficiencies in your credit reporting. This may make it difficult to qualify for a higher amount after you take into account more money to pay for fees and monthly payments.
What About Previous Data?
If you qualified for a loan before the new rules, you may have some nasty surprises ahead of you. Mortgage loans approved in the past can easily be affected, with the most common problem being how much of a cushion you need to buy the house.
If you qualified with a 5% down payment, you might need 10% now. Since the percentages are based on the total cost of the home, the borrower may be facing an addition of many tens of thousands of dollars they need to come up with before closing. This is why many people are finding that even if they qualify, they are caught short.
Check Your Local Market and Lenders
The situation is not the same in every state in the union. Be sure to check your local real estate market and lenders. Lenders are becoming more aware that some areas have resisted the downturn and they are not as concerned about fallout in housing prices there. This can impact the types of offer that are available in your area versus some place like Florida.
As long as the market is good in your area, you will probably have more choices in mortgage loans and favorable terms than other more affected areas.
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Mortgage Fixed News
PRESS RELEASE: Freddie Mac Says Historic Lows For Fixed Mortgage Rates Hold Steady - Wall Street Journal
 CBS Moneywatch | PRESS RELEASE: Freddie Mac Says Historic Lows For Fixed Mortgage Rates Hold Steady Wall Street Journal McLEAN, VA -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing the record lows for average fixed mortgage rates holding steady for the week. The 30-year fixed-rate mortgage ticked slightly ... Freddie Mac: 30-year mortgage rate down a tick at 3.78% 30-year mortgage rate hits another record low US 30-year mortgage rate falls to record 3.78 pct. |
Bankrate: Mortgage Rates Hold at Record Lows - MarketWatch (press release)
 San Francisco Bay Area Today (press release) | Bankrate: Mortgage Rates Hold at Record Lows MarketWatch (press release) NEW YORK, May 24, 2012 /PRNewswire via COMTEX/ -- Mortgage rates were little changed, remaining at record low levels. The average rate on the benchmark 30-year fixed mortgage rate was unchanged at the record low of 3.97 percent according to ... Mortgage Rates Remain at Record Lows Mortgage rates drop to new record lows, mortgage activity jumps Today's Mortgage Rates for 5/24/12 |
HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again - San Francisco Chronicle (press release)
 Christian Science Monitor | HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again San Francisco Chronicle (press release) HSH.com releases its latest Weekly Mortgage Rates Radar showing a downward drift in fixed mortgage rates from the previous week. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of ... 30-Year Fixed Mortgage Rate Rises Slightly After Falling to All-Time Low Last ... Mortgage rates slide to record lows Mortgage applications up on refi demand: MBA |
US mortgage rates for past 52 weeks at a glance - San Francisco Chronicle
US mortgage rates for past 52 weeks at a glance San Francisco Chronicle (05-24) 09:23 PDT , (AP) -- The average US rate for the 30-year fixed mortgage fell to a record low for a fourth straight week. Cheap mortgages have helped boost home sales modestly this year. Here's a look at rates for fixed- and adjustable-rate ... Average US mortgage rates for the past 52 weeks, at a glance |
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances - FreeRateUpdate.com
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances FreeRateUpdate.com With the convenience and ease of an online inquiry for any type of mortgage, it is no surprise that mortgage applications are on the rise considering how low mortgage rates have fallen. Current 30 year fixed mortgage rates are at 3.375%, 15 year fixed ... New Record Low Set By Fixed Mortgage Rates According to ForTheBestRate.com Zillow: US 30-Year-Mortgage Rates Rose Slightly In Latest Week |