Question:

How are sub-prime mortgage lenders coping with the crisis?

Answer:

Basically, sub-prime mortgage lenders have been tightening sub-prime mortgage underwriting requirements - as fully opposed to the ease mortgage loans were issued once. Real bad credit borrowers still can find sub-prime mortgage lenders willing to extend money. It is more difficult to those who need to go stated income and need to borrow with more than 95% LTV.

Bad Credit Mortgage Loans: Hard to Get

However, sub-prime mortgages right now are particularly hard to obtain. Even though only less than 15% of the borrowers fall into the sub-prime category with credit under 620, their number was enough to shatter several (more than 20) sub-prime lenders. Some of those either shut their doors, or sought bankruptcy protection.

In result, the other sub-prime lenders have really tightened up loan guidelines. Credit scores have to be higher, loan amounts are smaller, rates are higher and larger down payment is required.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage