Low Down Payment Programs Helped Keep Mortgage Credit Availability Flat in February

The Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) showed little change in mortgage credit availability in February. The indices for conforming loans and government loans reflected upticks by 1% and 0.6%, respectively, indicating a loosening of credit for these loan types. Alternately, data for conventional and jumbo loans showed a minor tightening of credit with both indices dipping less than 1%.

Lynn Fisher, MBA’s Vice President of Research and Economics, stated, “Slight declines in conventional programs aimed at low-to-moderate income borrowers were offset by increasing availability of government-backed programs. More than half of the investors in our credit availability data set are now offering some form of a conventional low down payment loan program which is targeted at lower income borrowers and first time home buyers and generally allows a down payment as low as 3 percent.” Read the MBA’s full article at http://bit.ly/1R7KejY.

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