- July 6, 2008 at 6:55 am #259597
>>the banks have raised the minimum qualifications…
you need a much higher credit score…you need a credit history<<
Yes, the banks and mortgage lenders have raised minimum qualifications. They need higher credit scores because people have so much credit they need to feel confident that those people can keep their heads above water.
but – and I cannot stress this enough – you do not need a credit history to get a mortgage. it’s a MYTH designed to get people to use more and more credit!
Even in today’s mortgage industry this is true.
Conventional lenders are doing fine – it’s the brokers who were using creative financing, particularly ARMS to get people into houses they couldn’t afford in the first place who are struggling.
In fact, I take great comfort in talking to lenders who are doing manual underwriting (as opposed to fico underwriting) and hearing that they are actually beginning to look even more favorably at those who pay their bills with their take home pay and do n ot rely on credit.
they know responsible people when they see them and show preference to people who live within their means.
i would hate to see anyone on this list being scared into keeping a credit card out of false information about mortgage worthiness based on credit history.
monica in il
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