A recent article in the New York Times, reports that "about 26 million Americans lack a credit file." Ann Carrns continues by adding that these "credit invisible" consumers...lack any credit history with the major nationwide credit reporting agencies, which tends to shut them out of the economic mainstream. These findings are according to a report issued on May 5, 2015 by the Consumer Financial Protection Bureau.
"An additional 19 million Americans, or 8 percent of adults, have some credit history, but not enough to create a score. Eighty percent of adults, or about 189 million people, have credit scores."
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CNN Money recently reported that the "3% down payment mortgage" is making a comeback!
"In an effort to open up lending to more low-income and first time home buyers, Fannie Mae and Freddie Mac announced Monday that they will start backing mortgages with down payments of as little as 3% of the home's price."(Source CNNMoney)
Before you get too excited - it's important to realize that borrowers will need to meet strict guidelines to qualify.
Yahoo News (Homes Division) reported this morning that buying a home is actually getting easier. They add that if you've gotten turned down for a mortgage in the past few years, now may be a good time to re-apply.
"That's because, according to Ellie Mae research, in July 2014, 67 percent of all mortgages applied for closed. That's way up from six months before in January 2014 and also in July 2013, when the rate of mortgages that closed were at just 53 percent at both times." (Source: Yahoo Homes)
According to the president of Ellie Mae, Jonathan Corr - this is due, in part, to lenders easing their qualifying standards.
Yahoo goes on to point out three key reasons the industry is getting more flexible:
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