Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

Borrowers need to get off the sidelines and into a home

Posted by Mastura Zaini-Roberts on Thursday, March 2nd, 2017 at 11:15am.

When the housing crisis hit in late 2009 and 2010, credit tightened as a natural response. Although the market has largely recovered, financing has remained difficult for borrowers with credit scores below a certain threshold. 

According to the January 2017 Ellie Mae Origination Insight Report, 69% of all closed loans had FICO scores over 700. In fact, borrowers with FICO scores between 750 and 799 represented the largest share of closed loans in January for purchase, refinance and conventional loan categories.

Because borrowers with lower credit scores are still having difficulty securing financing, there’s a significant amount of pent-up demand. Many lenders are reluctant to work with lower credit scores, leading many potential homebuyers to believe they cannot enter the housing market. 

The only segment that credit bracket didn’t dominate was Federal Housing Administration (FHA) loans, where FICO scores of 650 to 699 had the largest share of closed loans.

There are, however, some lenders that are making an effort to serve these frustrated potential homeowners in an underserved market. Mortgage professionals with clients who have lower credit scores or challenging credit histories must seek out lenders that have programs that allow for responsible lending to these borrowers. Some lenders have programs – or are experts at using existing government loan programs – that work with borrowers with credit scores as low as 550 for FHA loans, as well as offering products with smaller down payments, simplified loans with no lender closing costs and more.

By partnering with lenders who not only recognize the need for loan products for an underserved market, but make the effort to specialize in understanding and underwriting these programs, mortgage professionals can help a broader swath of potential homeowners who have been stuck on the sidelines for far too long.

 

By Ray Brousseau
http://www.mpamag.com/news/get-borrowers-off-the-sidelines-and-into-a-home-61764.aspx

 

 

Mastura Roberts
(702) 919-5400
offers@greatlasvegashomes.com

Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052

With over 30 years of experience helping families call Las Vegas "home!"



Related Blog Posts

Mortgage Rates Move Up for First Time in 2017

  Following several weeks of decreases, mortgage rates were back on the rise this week. "The 10-year Treasury yield increased more than 10 basis points this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate moved up as well to 4.19 percent, a 10 basis point ju...

8 Things Home Sellers Should Never Reveal (Except To Their Realtor)

When homeowners decide to sell, they may find themselves justifying their choice to anyone who’ll listen. But, as the old saying goes, “Loose lips sink ships.” In today’s world where sharing is the norm, sometimes keeping your rationale for making a move all to yourself is the right move....

Client Success Story - Jackie Goodman

Typically my clients are relocations and many have never actually been in their home until the day of move in. That can create a unique situation such as timing for arrivals of delivery trucks, buyers not being in the city at the time of close, pet-friendly hotels, etc… I provide information necessary to assist...

2019 Las Vegas Relocation Guide

This is a great resource for information about las vegas -- for locals and for those planning to relocate. CLICK HERE TO DOWNLOAD:  2019 LAS VEGAS RELOCATION GUIDE  This Guide contains valuable updated information about all of the below and more !- Zip code map of the city- MLS map of the city- Climate in...

What does a real estate agent do all day anyway?

It's not as easy as it looks on TV Key Takeaways A real estate agent's job is to make sure everyone else involved in the transaction is doing their job. Agents have to continually shift gears to quickly adapt and respond to customer needs. What does a real estate agent ...

Leave a Comment

Have a Question?

Contact Us

Follow Us