Crisis! What crisis!

While listening to the radio this afternoon the host invites yet another guest who informs us how hard it is get credit for owner occupied housing. How many similar stories have rang across the airwaves? Yes credit standards have got a lot tighter, but the tone is generally so negative that applying for credit is made to sound like a real ordeal meant for super heroes only. A lot of us hover around the low 700's and according to this guy you need 770+ credit score.


So it would make sense to find out hard this really is. Calling a whole bunch of loan officers the general consensus is that it's not that bad. What is quoted on the radio is really for those wishing to get the best possible rate when a perfectly acceptable rate is available. It was noted that it is probably harder to buy a car than a house.


Nick Morse of Bancgroup said, "Banks are extremely willing to lend money to qualified borrowers. A borrower can have a 650 credit score with 10% down, and receive a 30 year fixed mortgage. Borrowers with a credit score of 720 with 10% down would receive a 30 year fixed mortgage at an extremely competitive rate".


Significant factors relating to the drop in interest rates are directly liked to the US Treachery Department announcing a few week ago that they will purchase $500 billion in mortgage backed securities. Since then interest rates have dropped from about 6% for a rate today of 4.85%.

Who can complain about that? Even Countrywide is offering a no document loan. If this continues along with the one in front of gas prices the world is wide open again and good bye recession.

Lets be positive!