Comments on: Are Lenders Loosening Up on Those Buying a House?

By: Ben

Ben — Mon, 19 Nov 2012 05:28:46 +0000

I am going through the mortgage income process, and may be denied according to my agent. Credit score is 760, my W-2 income is 38k a year for a 219,990 with 30% down. The problem is my investment income of 2,880/month was disqualified because my S Corp pays out distributions from cash, not monthly dividends. Bottom line, I make over 5,200 a month and am having a problem qualifying for mortgage + taxes of 1,700 a month. The pendulum has swung too far and something is majorly wrong with the banks. I really think they don’t want to lend anything…

By: Mark DeLauro

Mark DeLauro — Fri, 12 Oct 2012 17:36:04 +0000

What bank did you use if you do not mind me asking?

By: Rosmery

Rosmery — Tue, 09 Oct 2012 00:09:19 +0000

I was denied with a 640 credit score & very little debt, for a government foreclosed property less than $16,000. The underwriting did not approved because of my self employed income was too low ($18,000 p/yr); but if I was working for someone else other than for myself at minimun wage but “secured job”-Mcdonals, I would hav been approved. It was not easy to find a lender to pre approve this amount for mortgage loan.
So I would have to go with Mr. Cook. On the other hand they would lend you on an automobile for $600 a month (dealership) with no problem at all.

By: Anonymous

Anonymous — Sun, 24 Jun 2012 18:18:19 +0000

John you are completely wrong. I am an investor who was hit very hard in the Atlanta market crash and have just obtained a Fannie Mae loan to finance one of their foreclosures with a 565 tri-merged score and only 10% down. And with a much lower income than before.
Beth

By: Ilyce Glink, Managing Editor, The Equifax Finance Blog

Ilyce Glink, Managing Editor, The Equifax Finance Blog — Fri, 08 Jun 2012 19:30:51 +0000

John:

There’s no question that folks with lower credit scores are getting mortgages – but there are a lot more obstacles for borrowers with lower stores than higher scores. And, folks with lower scores don’t get the same interest rates as those with higher scores.

I’m sure you’ll agree that mortgage lenders are pickier these days and every little item is questions to the nth degree.

You’re right that there are lending opportunities, but you have to search to find one that works for you.

Thanks for your comment.

By: John Barker, Primary Residential Mortgage, 708-597-6777

John Barker, Primary Residential Mortgage, 708-597-6777 — Fri, 11 May 2012 16:09:19 +0000

Articles like this discourage people from even applying for a mortgage. When people see that the average credit score that is denied is 750 they figure, “Why bother?” We are helping a lot of people with credit acores a lot lower than 750.

These statistics paint a bleak picture for most borrowers but do not tell the entire story – not even close.

If you are looking to buy or refinance, please contact me or another lender – even if you think you cannot qualify. There may be opportunites for you. Or, a professional mortgage professional may be able to help you put yourself into a position where you can get a mortgage in the near future.