The M Report – Tory Barringer
A study from Zillow finds three out of 10 Americans are still unable to get in on today’s improving market as mortgage availability remains tight. For its analysis, Zillow analyzed 13 million loan quotes and more than 225,000 purchase loan requests on its Mortgage Marketplace in the first half of September. Results were compared to a similar study conducted in September 2010. The findings show that borrowers with credit scores under 620—about 28.4 percent of Americans today, according to data from myFICO.com—were unlikely to receive even one quote for a 30-year fixed-rate loan, even if they offered a higher down payment of 15-25 percent. “Despite all-time high levels of affordability in the housing market, tightened lending standards mean that nearly one-third of Americans are unlikely to be able to achieve the American Dream of homeownership because they can’t qualify for a mortgage due to a low credit score,” said Erin Lantz, director of mortgages at Zillow.