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Getting a mortgage with bad credit

Posted by Mehran Aram on Wed, Sep 25, 2019 @ 05:09 AM

The desire to become a homeowner is not unique to those with stellar credit. With demand for housing at it’s highest levels in decades, some lenders have returned to offering mortgages for a wider variety of consumers, including those who have sub-par FICO scores.

Borrowers with credit scores in the low 500s can find it easier to be pre-approved through government home loan programs like FHA, VA and USDA loans. Borrowers with negative reporting on their credit history may still find lenders willing to give them a mortgage but will have to accept a higher interest rate in exchange.

Fortunately, if a borrower’s over financial status meets the lender’s standards, less weight may be placed on credit. For instance, a solid work history, appropriate debt-to-income ratio and a growing savings account can count for a lot.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: credit report, VA Loans, VA, FHA, Mortgage rates, Home Loan, Homeowner, Credit Score, Mortgage Debt, USDA Loans, FICO, FICO Scores

Average credit score of home buyers rises

Posted by Mehran Aram on Tue, Jul 30, 2019 @ 05:07 AM

Securing the best terms on a home loan can help buyers save money and with credit scores rising across the U.S., doing this is becoming more common. According to a new report, the average credit score of Americans applying for a mortgage in June rose to a three-year high. The data comes from mortage software company Ellie Mae.

Credit scores for home buyers averaged 731 last month – the highest since September 2016. The higher FICO scores are a product of a strong economy and plentiful jobs helping borrowers make on-time payments on their bills. The current unemployment rate nationwide is 3.7 percent, near the lowest level in 50 years.

Top tier credit scores are helpful to buyers as banks continue to impose strict lending standards.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Mortgage rates, home buyers, Credit Score, Ellie Mae