Gulf Shores Real Estate - Orange Beach Homes For Sale

Welcome to Gulf Shores, Alabama
866.981.4378
  • Home
  • Home Search
  • Condos
  • Communities
    • Elberta AL Real Estate
    • Foley
    • Gulf Shores
    • Lillian
    • Magnolia Springs
    • Ono Island
    • Orange Beach
    • Perdido Key
  • Exclusive Buyer Agent
  • Resources
  • About Malcolm Bond
  • Contact
You are here: Home / Gulf Shores Mortgage Info / Gulf Shores Mortgages May See Alternate Credit Score

Gulf Shores Mortgages May See Alternate Credit Score

April 12, 2015 by Malcolm Bond

The Federal Housing Administration (FHA) is exploring alternative credit scoring models for those seeking Gulf Shores mortgages. The alternative credit scoring models could expand access to mortgage credit for responsible borrowers who may have thin credit histories or extenuating circumstance like medical debt.

Many Unable to Obtain Gulf Shores Mortgages

Due to restrictive lending many of the qualified Gulf Shores borrowers are not able to enter the housing market because they can't get Gulf Shores mortgages.

Those seeking Gulf Shores mortgages may get a break if alternative credit scoring models are used

The National Association of Realtors (NAR) first called on federal regulators and the credit and lending communities in 2011 to reassess the entire credit structure and look for ways to increase the availability of credit to qualified borrowers who are good credit risks.

Work by the Harvard University Joint Center for Housing Studies indicates that borrowers with lower incomes as well as minorities face higher rejection rates on applications for Gulf Shores mortgages. A NAR analysis of mortgage data from 2007 to 2013 indicates that the share of rejected loans due to credit scores was significantly higher for African Americans and American Indians.

The newer credit scoring models put less emphasis on the impact of unpaid medical bills, and the effect of missed payments on debts that have subsequently been paid off is eliminated. FICO 9 and VantageScore 3.0 incorporate public utility and rental housing payments, information that helps lenders to evaluate younger persons and minorities who might not have a history of credit use. FICO estimates that its new model could improve scores by 25 to 100 basis points.

Also of Interest  New Rules Could Affect Gulf Shores Mortgages

The biggest limitation to borrowing is tight credit standards. These conditions are exacerbated by outdated credit scoring models that don't take into account the unique spending and savings patterns of Hispanic borrowers. Alternative credit scoring models need to consider these patterns so creditworthy borrowers are not turned away from obtaining Gulf Shores mortgages, and along with that, the American Dream of homeownership.

We will keep you posted right here on our website about this potential change in scoring by the FHA, and how it may affect those trying to get Gulf Shores mortgages.

Filed Under: Gulf Shores Mortgage Info Tagged With: Gulf Shores mortgages

Looking for real estate in the Gulf Shores/Orange Beach area? Try our advanced real estate search.

Gulf Shores Real Estate Articles

  • Condos For Sale in Gulf Shores: 6 Ways to Liven Up Your Condo Space
  • Preparing Yourself Emotionally for Buying Orange Beach, AL Condos For Sale
  • Drop These Bad Habits Today Before You Buy a Gulf Shores Real Estate Property
  • Gulf Shores Real Estate Interest Rates and Affordability
  • Gulf Shores Economic News: Millennials and Housing

Gulf Shores Real Estate Categories

  • Gulf Shores Homes for Sale
  • Gulf Shores Real Estate
  • Orange Beach Real Estate
  • Gulf Shores Home Buying Tips
  • Gulf Shores Home Selling Tips
  • Gulf Shores Home Improvements
  • Gulf Shores Home Inspections
  • Gulf Shores Insurance
  • Gulf Shores Mortgage Info
  • Gulf Shores Economy
  • Gulf Shores Real Estate News
  • Gulf Shores Newsletters
  • Gulf Shores Buyer Brokerage
  • Gulf Shores
  • Taxes
  • Home
  • Search for Homes
  • Communities
  • Contact our Real Estate Team

Design and Hosting by Hudson Enterprises, Inc. · Copyright 2010- 2019 Malcolm Bond THE Buyer Agent · Privacy Policy

Copyright © 2019 · AgentPress Pro Theme on Genesis Framework · WordPress · Log in