Local Lender Warns of Credit Tightening
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS
February 26th, 2009
A reputable local mortgage broker noted in a recent email that he is finding that many of the banks he brokers loans to are bumping the minimum credit score upward. This would not be a big deal except more Shasta County residents already have credit scores below the national average.
He cites as an example that 25% of the nation’s population has a credit score at or below 620, the new bottom number for borrowers seeking loan approval. For Shasta County, his experience indicates roughly 35% of the people he sees have credit scores at or below this threshold.
The bottom line recommendation: buyers on the fence with credit scores in this realm get off the fence and buy before credit tightens further! Considering the large supply of available homes and interest rates hovering around 5%, now may be the last chance for many buyers to qualify unless they take action to significantly improve their credit score or offset the new underwriting limitations by making a larger downpayment.
One bit of positive news is FHA loan limits have once again been raised to $417,000. This will aid buyers wishing to make a minimal downpayment of about 3.5% with lenient underwriting.
Contact me for details.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
