Montgomery home buyers with poor credit are having a more difficult time qualifying for a mortgage in a changing real estate market due to sub-prime lending practices. Sub-prime lending is the loaning of money, primarily for home equity loans, to people with spotty credit or the credit challenged, shall we say.
Skyrocketing property values in the past few years made it easy for homeowners to borrow heavily against their homes with second mortgages and home-equity loans. But as housing prices have leveled off, overextended homeowners are now defaulting because they cannot afford higher mortgage payments and can no longer refinance.
Every where you look, including websites such as BankRate.com, you see information about the dramatic increase in foreclosures due to sub-prime lending. In the wake of increased foreclosures, lenders are tightening their belts and increasing loan qualification limits. The majority of sub-prime borrowers are either lower income or minority borrowers, and the stricter loan qualifications are making it tougher for them to obtain financing.
As these alternative credit programs (loans for credit-challenged borrowers) disappear, it becomes increasingly important that home-buyers deal with an agent whose background and training include mortgage financing techniques. No matter how tough lenders become, they all have what is called a Community Reinvestment Act obligation to reach out to marginal borrowers.
We, at The Hat Team, not only have the knowledge and experience to help you find financing for your new home, we have a network of well-qualified, reputable lenders who will do everything they can to assist you also.
You can learn more about us at HatTeam.com or give us a call, 800-428-5239. We are at your service!
