According to a recently released report, some economists believe that the housing crisis will end this year. The reason given: loosening credit.
The firm says the average credit score required to attain a mortgage is 700. This is higher than credit scores required prior to the housing crisis, but it is constant with requirements from one year ago.
However, there also appears to be a loosening of credit availability.
Banks are now lending amounts up to 3.5 times a borrower’ s annual income. This is up from a low during the housing crisis of 3.2 times a borrower’s annual income.
Banks are also loosening their “loan-to-value” ratios (LTV), which is the ratio of the loan amount divided by the purchase price. They are currently lending at 82% of LTV, versus a low of 74% during the housing crisis.
Many buyers are still struggling with credit requirements, though. Almost 10% of contract cancellations are due to potential buyers not qualifying for a loan.
If you are having trouble dealing with potential buyers who cannot qualify, contact us and we can discuss ways to quickly sell your house. We Buy Houses in Birmingham as-is on the date of your choice. You can reach us at 205-390-1050 or at our website, www.WeBuyBham.com.