More Americans can't get mortgages because of credit scores
10/01/2010
By
Close to a third of all Americans no longer qualify for even the worst mortgage rates, according to a new report from home loan marketplace Zillow.com. Many lenders are not even considering consumers whose credit score is below 620, regardless of the situation. In fact, even when some borrowers offered to put up down payments of 15 to 25 percent, the banks rejected them.
The report also said that those with scores above 720 typically got the best interest rates, while those in the middle found their APR improved with every 20-point increase.
Many financial institutions have tightened lending restrictions in response to the fallout from the subprime mortgage bubble bursting. As a result, they are far less likely to lend to borrowers who prove themselves to be an investment that's in any way risky.
