The demand for home loans has increased, but according to the Federal Reserve's mortgage loan officer survey, mortgage lenders have not relaxed tight credit scores and home loan qualifying requirements.
Over 90% of the mortgage lender respondents to the survey said there was no change in the past 3 months in their qualifying standards for home loans with relatively high credit scores and well-documented financial statements.
The survey did show that mortgage lenders eased standards for most other types of consumer loans. And demand for all types of consumer loans rose, with car loans having the biggest increase.
Lenders said they were less likely to approve home loans with credit scores of 620 and a down payment of 10%. Even for credit scores of 680 and a 10% down payment, about 79% of mortgage lenders said they were likely to approve a loan.
Over 90% of the mortgage lender respondents to the survey said there was no change in the past 3 months in their qualifying standards for home loans with relatively high credit scores and well-documented financial statements.
The survey did show that mortgage lenders eased standards for most other types of consumer loans. And demand for all types of consumer loans rose, with car loans having the biggest increase.
Lenders said they were less likely to approve home loans with credit scores of 620 and a down payment of 10%. Even for credit scores of 680 and a 10% down payment, about 79% of mortgage lenders said they were likely to approve a loan.