Home Loans Are Still Available

Home Loans Are Still Available

The rising number of foreclosures and the mortgage-driven meltdown on Wall Street have left many homeowners hoping to refinance and potential first-time homebuyers wondering whether they can get a loan.

Contrary to what the press may have you believing, for most people, there's good news.

For those with good credit, shopping for a loan won't be any more difficult than it was a year ago.  About 58 percent of U.S. consumers fall into this category according to Fair Isaac, the company that invented the most-widely used credit scoring system.  Credit scores range from 300 to 850.

Even borrowers falling just below prime credit scores aren't having much trouble.  Borrowers with average scores likely will need a down payment of at least 5 percent to 10 percent of the home's value to qualify for a loan.

The good news is… if you have decent credit, not much has really changed.  So take advantage of good market conditions and don't let the press and all the bad news about the subprime mortgage market scare you out of owning your dream home.