Standards
for mortgages looser than ever By Michael D. Larson • Bankrate.com
Borrowers who might never have qualified for
a mortgage before can easily do so today, thanks to a relaxation
of loan standards that has taken place over the past few years.
The following are specific examples of old-line standards and modern
guidelines on a sampling of mortgage programs. These programs are
either available today or will be shortly.
Note that guidelines vary from lender to lender,
and a strong score in one area can sometimes make up for weakness
in another.
What
once was
(old mortgage standards)
What
now can be
(today's looser standards)
Monthly overall debt-to-gross-income ratio
36 percent
45-50 percent
Down payment
20 percent
0-3 percent
Late housing payments
None in past 12 months
Two in past 12 months
Length of wait after a bankruptcy
to get a conventional loan
10 years
As little as 2 years
Length of wait after a foreclosure
to get a conventional loan
