Low Mortgage Rates for Smart Loan Shoppers
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Low Mortgage Rates for Smart Loan Shoppers |
Getting a Home Loan despite Your Bad CreditBy Gabriel TraversoCMR Columnist If you've been paying attention to the mortgage market news lately you probably haven't missed the doom and gloom over the subprime mortgage segment of the industry. Tighter Lending Standards the Word of the DayIn a recent article in the San Francisco Chronicle columnist Kathleen Pender said that "Lending money to people who can't afford a traditional mortgage, especially when they have lousy credit ratings and don't substantiate their income" is an even dumber move than consumers taking a home loan they can't afford. So as you read about stricter lending standards resulting from the sub-prime mess you might be worrying that you won't be able to get a home loan yourself because of your bad credit. Well, while Pender might be right, it doesn't mean you won't be able to find a mortgage lender willing to work with you.Home Loan News: A Positive OutlookFreddie Mac, in spite of all the recent turbulence, is forecasting clear weather in the near future. Though home appreciation is settling down, Freddie projects values to rise 2.5% on average in 2007 and then up to 3.2% in 2008. This is good news--and the picture gets brighter for bad credit borrowers: last week the National Association of Realtors appealed to Congress for FHA reform. Said spokesperson Iona Harrison, "The FHA program makes it possible for higher risk, yet credit-worthy, borrowers to get prime financing," and asked that the FHA eliminate the 3% down payment requirement in order to help more families achieve homeownership.The bottom line? Don't let your bad credit get you down. There are still lenders willing to work with you for a home loan; you just might have to hunt around a little harder. Sources SFGate: Why we shouldn't be bailing out subprime lenders or borrowers NAR: FHA Must Be Reformed to be Viable Mortgage Alternative: NAR to Congress About the Author Gabriel Traverso is a freelance writer, professional musician, and artist. He resides with his family in Reno, NV. © 2007 CMR. All rights reserved. |