Having a credit score of 730 is considered to be very good in most circles, but apparently not good enough to get a home loan.
An article in The Wall Street Journal on Wednesday noted that banks are now demanding even higher credit scores and bigger down payments on home loans than they have in the past. A report from mortgage software provider Ellie Mae revealed that applicants with credit scores that were previously deemed good are now the reasons that loans are being denied as banks get increasingly cautious.
Loans closed by banks and mortgage lenders in February had borrowers with a credit score of 750, up from 740 six months earlier, and an average loan-to-value ratio of 76%. The average denied loan had a credit score of 699 and a loan-to-value ratio of 83%. “Talk about high-quality loans — those are pristine,” says Jonathan Corr, chief operating officer of Ellie Mae.
A couple more interesting facts from the piece: the average refinancing applicant going through Fannie Mae and Freddie Mac had a credit score of 770, and the average denied borrower for a “conforming” refinance mortgage had a score of 720; most people don’t have a score of over 800.
You can read the full article here.
This article originally published at http://dc.urbanturf.com/articles/blog/the_credit_score_obstacle/5372
Most Popular... This Week • Last 30 Days • Ever
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The housing market last month was not as hot as September 2020, but that is probably ... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
DC's crane count still ranks as one of the highest among U.S. cities despite a declin... read »
The latest installment of Above Asking revisits two recently-featured listings in the... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The yet-to-be-built home may set a new bar for luxury in the residential real estate ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro