Review of New Mortgage Loan Programs

I stumbled across an article today in the Star Tribune (Minnesota newspaper) that Home Buying Institute readers will find helpful.

It's all about changes in the mortgage industry, and mortgage loan programs that are on the rise today. As you know if you've watched the news over the last month, mortgage lenders these days are being pressured to tighten up on their mortgage-qualification guidelines. This comes as a result of the spike in home foreclosures over the last couple of years and the "easy lending" of subprime mortgage loans in the past.

In spite of these supposedly stricter mortgage qualifications, there are still some legitimate mortgage loan programs for buyers will less-than-ideal credit scores.

Here's an article excerpt:

Although the lending landscape has changed, there are still plenty of consumer-friendly loan options for a wide range of home buyers. Ronny Loew, senior mortgage banker at First Horizon Home Loans, Edina, said the industry is responding by taking a more conservative approach. 'We're taking a big step back to the old ways,' he said.

Read the full article here