Buying A Home In A Sellers Market With Bad Credit
Buying A Home In A Sellers Market With Bad Credit is finding a lender with no lender overlays. Buying A Home In A Sellers Market With Bad Credit can be challenging during these times with COVID-19 spreading. Most lenders have tightened up credit standards and requirements.
Most lenders have increased their minimum credit score requirements and increased lender overlays on just about everything during the coronavirus pandemic. Lenders who had a minimum credit score requirement of 580 on FHA loans have increased them to over 640 FICO. Some lenders have even increased them to over 680 FICO. VA loans have no minimum credit score requirements as long as the borrower has an automated underwriting system approval (AUS). However, most lenders have a 640 or high credit score requirement on VA loans. The great news is Gustan Cho Associates has no lender overlays during the coronavirus pandemic.
GCA Mortgage Group just goes off the AUS FINDINGS with no additional lender overlays on government and conventional loans.
The Major Issue Facing Buyers When Buying A Home In A Sellers Market With Bad Credit
The housing market is booming. This holds true even though the economy is recovering from the coronavirus pandemic. Over 50 million Americans have filed unemployment during the COVID-19 outbreak. Unemployment rates have been recovering since their peak numbers a few months ago. The unemployment rate has fallen under 10%. This is a great sign the economy is headed on the right track. The coronavirus outbreak in the U.S. has alarmed investors of the secondary mortgage bond markets where investors do not have an appetite to purchase mortgages of lower credit score borrowers. This has forced many lenders to increase credit score requirements from their borrowers. This creates a problem for homebuyers with bad credit and lower credit scores.
The major issue facing buyers when Buying A Home In A Sellers Market with bad credit is most lenders have increased their lender overlays on credit scores and borrowers with bad credit. It is more difficult for borrowers with lower credit scores to qualify for a mortgage during the coronavirus pandemic. The housing market is booming nationwide. There is more demand for housing than inventory.
The hot housing market and demand for housing often create hurdles for homebuyers with bad credit. The key is to find a lender who has no lender overlays such as the team at Gustan Cho Associates. GCA Mortgage Group has no lender overlays on government and conventional loans during the coronavirus outbreak. We just go off the automated underwriting system findings (AUS) and have no additional lender overlays.
Michelle McCue said home sellers are more concerned about not having any stress during the home selling process than getting the highest bid on their home. What good is it having the highest price for your home if it does not close?