US cities where it is easier to get a mortgage if you have a low credit rating

The average credit score for those who are going to buy a house and are looking for a mortgage on 30 years with fixed payments is 755. We are talking about mortgage loans covering 80% of the value of the property, up to the amount of up to 453 100 of US dollars at the national level (in expensive regions the figures may differ). How to buy a house if your credit rating is lower than 650?

Фото: Depositphotos

The answer depends on where you want to buy it, how much to take at the bank, and how likely it is that you pay off the loan safely after you pay the rest of the bills and pay off other debts, writes USA Today.

There are three main factors that determine whether you can get a mortgage: your credit score, loan-to-mortgage ratio (LTV) and debt-to-income ratio (DTI). his total income).

Ten years ago, during the US housing crisis, mortgage lenders could issue loans that did not require any documentation of the borrower's income. The loans could later be converted into securities and resold to investors who had no idea what they were buying. Today, mortgages must be fully documented, and although they may be “packaged” in securities, the rules regarding the quality of the loans in these packages have become much stricter.

The investment groups Fannie Mae and Freddie Mac will now take fully documented loans from LTV to 97% interest and up to 3% down payment. Last year, both agencies raised DTI ratios from 45% to 50%. In some cases, loans that meet these requirements can be provided to customers with a credit rating of all 580.

Experts from Realtor.com explain:

Are you applying for a mortgage property without an excellent credit score? It's largely a matter of what government lending programs are available in a particular area, and they vary widely. For example, the USDA sometimes offers no-down loans to borrowers with scores below 640—but only for homes in rural ZIP codes.

Federal Housing Authority loans, one of the most popular mortgage loans supported by the government, allow borrowers with credit points less than 500 to qualify for loans with an 10% down payment (they must have 580 points in order to qualify for loans that require only 3,5% advance payments) . But many sellers prefer not to accept them if they have other suggestions.

Regardless of whether you can get a mortgage loan with a low credit rating, it all depends very much on the place, place and place again. Researchers from Realtor.com calculated the share of mortgage loans in 200 major US regions, which were provided to residents with points from 649 and below. The mortgage share was calculated over the 12 month period from July 2017 to June 2018.

Фото: Depositphotos

Here are 5 cities, where there are many borrowers with a credit rating of 649 and below:

Charleston, WV

• Average house price: $ 147,300
• Percentage of low rated borrowers: 39.1%

Clarksville, Tennessee

• Average house price: $ 209,950
• Percentage of low rated borrowers: 35%

Corpus Christi, TX

• Average house price: $ 239,750
• Percentage of low rated borrowers: 35%

Lakeland, FL

• Average house price: $ 229,500
• Percentage of low rated borrowers: 30.4%

Augusta, GA

• Average house price: $ 218,000
• Percentage of low rated borrowers: 26.5%

And in these 5 cities it is difficult to get a loan with a low rating:

Santa Cruz, California

• Average house price: $ 936,000
• Percentage of low rated borrowers: 4.3%

Fargo, North Dakota

• Average house price: $ 257,050
• Percentage of low rated borrowers: 5.4%

Ann Arbor, MI

• Average house price: $ 350,000
• Percentage of low rated borrowers: 6%

Durham, NC

• Average house price: $ 356,300
• Percentage of low rated borrowers: 7.2%

Boulder, Colorado

• Average house price: $ 612,550
• Percentage of low rated borrowers: 7.3%

Read also on ForumDaily:

As before the 2008 crisis: housing in the US can now be bought with a down payment in 10%

In the US, there is a decline in the real estate market, but housing prices are still rising.

10 the cheapest cities in the US to live

The best and worst states for the middle class

As a foreigner to get a loan for housing in New York: instructions and pitfalls

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.