Yes It's Still Hard To Get A Mortgage Loan

If you ask any Orange County Mortgage Broker or Orange County Realtors what their thoughts are on the current Real Estate Market, they will agree that it’s growing fast but for many hard working Orange County Residents, the Real Estate Market is out of reach to them because, they aren’t able to get an Orange County Mortgage Loan.

Fed Reserve Governor Express Concern

Elizabeth Duke, the Federal Reserve Governor, recently expressed concern over the lack of growth in the mortgage market and how hard it is for people to obtain mortgage loans in Orange County and across the United States.

Duke confirmed that she doesn’t want to see lenders relax on their lending criteria and start giving borrowers mortgage loans similar to those mortgage loans that were common in 2005-2006 but she did echo the sentiment of many Orange County Mortgage brokers that serious changes to the mortgage industry must be made because, most borrowers with credit scores that are in the 680 range are still unable to obtain mortgage loans.

What’s The Solution To The Problem?

As of April 2013, the mortgage industry still has strict restrictions on who can qualify for a mortgage loan because, due to low home prices combined with record job losses, lenders like Freddie Mac and Fannie Mae are concerned about creating another wave of record defaults if borrowers who should never been qualified for mortgage loans end up defaulting.

On the flip side of the problem is that thanks to the Federal Governments efforts to keep interest rates at record lows, lenders like Freddie, Fannie, Wells Fargo and Bank of America haven’t had to work as hard as in recent past because, low mortgage interest rates have created a “surge” in refinancing across the United States so it’s anyone’s guess if and when the credit “criteria” that most lenders have will ever be relaxed so the average borrower with a low credit score can qualify for a mortgage loan.

To refinance your existing Orange County Mortgage Loan or to see if you qualify for a mortgage, contact Sun Financial Group today for a free consultation at (949) 699-1950.