Lower mortgage volumes are an opportunity for challenged borrowers

 Lower mortgage volumes present an opportunity for challenged borrowers.  Recently mortgage investors have been loosening their mortgage guideline overlays. The biggest change was allowing borrowers with as low as a 620 FICO credit score to be eligible for FHA and conventional mortgages.  Since there are fewer loan applications, lenders and underwriters are willing to be more flexible when possible. Loan officers have more time available to work on challenging applications.  Borrowers who had difficulty getting a mortgage a year ago may now find a lender willing to lend to them.  I am having success working with clients to improve their credit scores for mortgage eligibility and lower payments.