Nearly a third of all Americans are unable to secure a mortgage in these challenging times.
According to the real estate website, Zillow, people with credit scores below 620 were unable to secure mortgage financing even when they had a solid source of income and offered a down payment of 15-25%.
According to myFICO.com as many as 29% of all Americans have a credit score that low.
While banks are being more careful in the wake of the mortgage crisis, this is seriously stopping the recovery of real estate across the nation.
According to myFICO.com as many as 55% of all Americans ?lost ground? or in other words, their credit scores have suffered during the recession of the past few years. 47% ?held their own? or had their credit score remain the same.
Unfortunately, it seems that the majority of people who ?held their own? were the older and more established Americans who were long time homeowners. According to Pew Research Center, 69% of people age 18-49 lost ground on their credit scores.
Without the ability to obtain mortgages the housing market it likely to continue its nasty decline.