Credit Scores Below 640 All But Eliminated from the Mortgage Market

Want to know why the dream of owning a home is out of reach for an increasing number of Americans?

A large number of financial institutions are unwilling to take a chance and extend credit to those who have a credit score under 640.  The reality, however, is that many won’t even consider a number under 680.

A recent blog in the Washington Post titled “A top mortgage industry executive explains why banks don’t want to take a chance on some borrowers” has a chart that makes it clear that access to credit is running at roughly one quarter of the pre-housing bubble rate of 2004.

What does that mean?  It means credit is available for those with high credit scores and the ability to make a large down payment.  This is not the group we serve.

With this reality our programs that help people understand how to build their credit scores and balance their finances to include a mortgage become more critical.  It also means we have more and more people in need of our help.

And we help is what we provide.

Through our counseling program, we help prospective homeowners determine if they are ready to purchase, and develop a plan to do so.  While it may not happen as fast as everyone would like, we are finding ways to get our clients above the magic number and achieve the dream of owning their own home.

If you know of someone who can benefit from our homeownership programs, we can be reached at 515-243-1277or

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