Getting a mortgage is easier than you think
Worried about qualifying for a mortgage? You might not need to. According to new data, credit standards are actually loosening — particularly on certain loan types.
Loosening credit standards should continue
According to new data from the Mortgage Bankers Association, it’s getting easier to get a mortgage. The MBA’s Mortgage Credit Availability Index rose by 2.1 percent in November, a move that’s “indicative of loosening credit,” the trade group says.
It was third straight month credit standards have loosened, according to Joel Kan, MBA’s associate vice president of economic and industry forecasting.
Additionally, Kan expects credit standards to continue loosening in the New Year.
“Expanding credit availability will continue to support active levels in mortgage lending, even as refinance activity starts to level off,” he said.
Homeowners want to refinance and it could save them big
Good news for FHA and jumbo loans
Credit standards are loosening the most on government mortgages, including FHA, VA and USDA loans. The Government MCAI jumped by 2.9 percent for the month.
FHA loans: The mortgage first-time homebuyers love
Jumbo loans also rose a significant amount, jumping by 2.2 percent and marking an all-time high for these types of mortgages. On conventional loans, the index rose 1.4 percent.
“Most notably, the jumbo index climbed to yet another record high, as investors increased their willingness to purchase loans with lower credit scores and higher LTV ratios,” Kan said. “Additionally, the government index saw its first increase in nine months, driven by streamline refinance programs.”
Get today’s mortgage rates
Are you thinking of taking advantage of today’s loosening credit standards? Then shop around and see what mortgage rates you qualify for today.