Easier Home Loan to assist housing recovery 2012, Capital Economics recently reported the possibility to the end of the US housing crises, late this year. This much awaited housing recovery may in part be due to the banking industry loosening up credit requirements to borrowers. We should not expect to go back the boom days when anyone with even a moderate credit score could get a loan. Buyers can expect to carry a credit score of 700 or greater to qualify according to the analytic firm.
In addition, to credit score; buyers will need to prove income (the days of the stated income loans are far gone); however, the good news is that it is expected that qualified buyers will be able to borrow roughly 3.5 times their annual income, this up from 3.2 from the crises; according to the report.
Furthermore, banks are expected to increase the LTV (Loan to Value Ratio) to 82% up from 74%.
As brokers we have personally seen many cash buyers and agree that the opening up of available credit to qualified buyers would most certainly assist in the housing recovery. Buyers requiring financing would be able to come off of the fence and begin to reduce the inventory levels. Capital Economics recently reported the possibility to the end of the US housing crises, late this year. This much awaited housing recovery may in part be due to the banking industry loosening up credit requirements to borrowers. We should not expect to go back the boom days when anyone with even a moderate credit score could get a loan. Buyers can expect to carry a credit score of 700 or greater to qualify according to the analytic firm.
In addition, to credit score; buyers will need to prove income (the days of the stated income loans are far gone); however, the good news is that it is expected that qualified buyers will be able to borrow roughly 3.5 times their annual income, this up from 3.2 from the crises; according to the report.
Furthermore, banks are expected to increase the LTV (Loan to Value Ratio) to 82% up from 74%.
As brokers we have personally seen many cash buyers and agree that the opening up of available credit to qualified buyers would most certainly assist in the housing recovery. Buyers requiring financing would be able to come off of the fence and begin to reduce the inventory levels.