Owning a home is the American dream, but that dream is unattainable for a lot of Americans. Mortgage lending guidelines continue to tighten, making homeownership far from a reality for many.
A recent report released by the Federal Reserve Bank of New York showed that the total volume of new mortgages declined by $39 billion in the second quarter of 2016, compared to a year earlier. Additionally, the median credit score was a high 756, which is well above the average score of 695. This means the average American is unable to qualify for a traditional mortgage, even eight years after the financial crisis.
While prices in several markets have returned to their pre-crisis peaks, this consistent tightening is a key reason why the U.S. housing market is hasn’t recovered. The lending restrictions of conventional banks and credit unions make mortgages only available to the most qualified Americans.
Fortunately, subprime lending offers a solution to this problem. While some subprime lenders have earned a bad reputation due to their contributions to the housing crisis, subprime loans aren’t all bad. Working with a reputable lender like Athas Capital Group eliminates the barriers to homeownership through structured and transparent lending programs, backed by in-house capital. Athas is one of the leading alternative lenders in the country, prized for its outstanding service and transparency. Visit www.athascapital.com to learn more.