The snowballing in sub-prime lending is becoming an avalanche.
Effective today, many lenders have discontinued 100% financing programs and other “piggyback” scenarios. These types of loans represented the widest doors to homeownership for Americans in recent years.
There are several reasons why a home loan applicant may be considered “sub-prime”, but the most common reason is because of the applicant’s credit score.
As mortgage lenders continue to tighten their parameters of to whom they will and will not lend, it becomes more important for people to practice strong credit and debt management skills.
myFICO.com features an educational area on the “art” of credit scoring. Regardless of your experience, you’ll be sure to learn something. Also, don’t forget that you can get a free copy of your credit report once annually.