December 11th, 2019 4:56 AM by Jackie A. Graves
Worried about qualifying for a mortgage? You might not need to.
According to new data, credit standards are actually loosening — particularly
on certain loan types.
According to new data from the
Mortgage Bankers Association, it’s getting easier to get a mortgage. The MBA’s
Mortgage Credit Availability Index rose by 2.1 percent in November, a move
that’s “indicative of loosening credit,” the trade group says.
It was third straight month credit standards have loosened,
according to Joel Kan, MBA’s associate vice president of economic and industry
Additionally, Kan expects credit standards to continue loosening
in the New Year.
“Expanding credit availability will continue to support active
levels in mortgage lending, even as refinance activity starts to level off,” he
Credit standards are loosening the most on government mortgages,
including FHA, VA and USDA loans. The Government MCAI jumped by 2.9 percent for
Jumbo loans also rose a significant amount, jumping by 2.2
percent and marking an all-time high for these types of mortgages. On
conventional loans, the index rose 1.4 percent.
“Most notably, the jumbo index climbed to yet another record
high, as investors increased their willingness to purchase loans with lower
credit scores and higher LTV ratios,” Kan said. “Additionally, the government
index saw its first increase in nine months, driven by streamline refinance
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