Mortgage brokers and the chief operating officer of a local bank said the mortgage meltdown has slowed down the housing industry but people with less then perfect credit can still get mortgages.
Luke Mathews is president the Mathews Financial Group. He’s been a mortgage broker for years. Even those with less than perfect credit are getting new home loans.
“Credit scores as low as 530 are currently getting loans with reasonable rates and reasonable programs that are available to everyone,” Mathews said. “FHA (Federal Housing Administration) offers less then conventional programs with very reasonable interest rates.”
Mathews said he’s still putting people in homes with low credit scores but it’s not as easy as it was prior to the mortgage meltdown. Ken Doolittle is the chief operating officer for Pennstar Bank. He admits that local banks like Pennstar don’t have the endless amount of investors to borrow from that brokers do so credit scores have to be a little higher but Pennstar is still writing mortgages for customers with credit scores well below 800.
“Right now today, credit scores as low as 630 or 640 can be approved through us. In addition to credit score there are other factors like down payment,” Doolittle explained.
Ninety-five percent of Americans have a credit score below 800.