Good News About Mortgage Lending.

It’s recently been reported that obtaining a mortgage may be easier than potential homebuyers think. This is great news after the financial crisis a few years ago.


Government-backed programs for first-time homebuyers with subprime credit scores can get mortgage insured via the Federal Housing Administration. And, contrary to the popular belief that the down payment needs to equal at least 20 percent of the purchase price of the home, these buyers are able to put down as little as 3.5 percent of the home’s purchase price.

Lenders look at your credit scores, loan-to-value ratios, income, debt load and many factors when considering your loan application. You will have a lot of questions asked about your financial portfolio…but there are programs in place lenders can offer to do their best to help you get loan approval.

After the financial crisis, mortgage lenders tightened their belts on approving home loans. In fact, The Mortgage Bankers Association’s Mortgage Credit Availability Index, which basically measures how easily borrowers obtain loans based on their credit profile, dropped by more than 80 percent from early 2007 through August of this year.

And, in addition to that fall, potential homebuyers have also been reluctant to try to buy a home, for fear of being rejected. As a result, some banks have responded by lowering the minimum credit scores, or FICO scores, for loans that are backed by the government, the Federal Housing Administration, Fannie Mae or Freddie Mac.

If you’ve been thinking of buying a home and aren’t sure if it’s “the right time,” contact your Realtor and discuss the pre-approval process. When the time is right, we welcome you to contact us, as we have been in the business for 125 years…providing title insurance, escrow and closing needs to clients. We work hard to close your home purchase quickly and efficiently, with the utmost attention to detail.

Contact us with any questions! We look forward to working with you!


About rowlandtitle

Rowland Title Company is Madison County’s premiere title company, celebrating its 125th year in business, and providing title insurance, escrow and closing needs to all 92 Indiana counties. For more information visit Rowland Title at (
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