Tight Credit – Are You Able to Buy?

With the tightening of credit over the last few years by banks, more potential Fountain Hills home buyers find they are being shut out of home ownership, unable to obtain financing for their home purchase. Don’t think this only applies to buyers with poor credit histories being rejected for home loans–think again, some buyers are even coming with high credit scores and large down payments, experts say.

The self-employed applicants are having the toughest time. A bank can deny you for a home loan, despite your credit score being above 800, no debt, and having a down payment of more than 50 percent of the cost of a home. If your income has dropped dramatically and you are not showing enough income to qualify for a loan along with two years of documented income, the banks won’t process your loan application. In the boom days of the real estate market most self- employed received stated income loans, also known as a no doc loan. I can relate to this as a Realtor, that is how I qualified for 2 homes and 2 rental properties, now my  income is fluctuating along with the housing market.

The percentage of mortgage applications rejected by the nation’s largest lenders increased last year: The country’s 10 largest mortgage lenders denied 26.8 percent of loan applications in 2010, which is up from 23.5 percent in 2009, according to an analysis by The Wall Street Journal.

If you are one of the fortunate ones who can qualify for a loan and are ready to buy, contact me at 480 888 6708