Who Can Get Financing To Buy A New Home?

Only those with stellar credit, reliable income and solid down payments.

For everyone else, mortgages are hard to get.

Yes, mortgage rates are near all-time lows and home prices are the lowest they’ve been in five years.

US News reports: Despite historically low home prices and rock-bottom mortgage rates, tight lending standards continue to keep would-be buyers on the sidelines. Higher credit-score requirements and more extensive income documentation requirements have also played a role in discouraging consumers from becoming homeowners.

“The mortgage climate has become a bit more challenging,” says Erin Lantz, director of Zillow Mortgage Marketplace. “The lending community is fairly conservative right now.”

But while mortgage financing is certainly no easier to come by these days, it’s no harder, either. “Borrowers have a little bit of a misconception that you can’t get mortgage financing,” says Keith Gumbinger, vice president of mortgage information web site HSH.com. “The mentality of ‘It’s going to be too hard for me to get financing, so I’m not going to bother even looking,’ is persistent.”

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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