Why home loans are now easier to qualify for

By Angie Johnson
(480) 570-5500
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Sun Point Appraisals is a paid advertiser of ABC15

Easy credit with no proof of income crashed our housing market and brought on lending standards so strict that Federal Reserve Board Chairman Ben Bernanke stated these new standards were too harsh and needed to change.

In recent months, lenders have relaxed their grip somewhat as the market has rebounded and home prices have soared.

If you have a steady income and good credit score contact our team today because there are more programs than ever before to assist in the purchase of your new home. These programs include down payment assistance that does not have to be repaid.

Real estate analysts also say rising rates could spur renewed competition among lenders.

"They are considerably more flexible than they were two years ago. The new trend is gaining steam," said Guy Cecala, publisher of Inside Mortgage Finance, a company that tracks and analyzes the residential loan market. "If you didn't qualify a year ago, it wouldn't hurt to go back and find out if you can qualify now."

Bankers remain cautious but are becoming more accommodating, agreed Erin Lantz, director of Zillow Mortgage Marketplace.

"The pendulum is swinging back to more normal, but still prudent, lending guidelines. Loans are becoming a bit more accessible."

The Mortgage Bankers Association has come up with a tool, the Mortgage Credit Availability Index, to help measure trends in home loan availability. The index rose 7.2 percent in May from May 2012, meaning it has become "somewhat easier" to obtain a loan, according to The Orange County Register.

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If you are in the market to purchase a new home please visit our website at www.AngJohnson.com to search available properties for sale in Phoenix, Scottsdale, Anthem, Chandler, Gilbert, Mesa, Carefree and so on. You may also contact Angie direct at (480) 570-5500.

Sun Point Appraisals is a paid advertiser of ABC15

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