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Per an article from, National Mortgage News, below are “6 Ways Relaxed Underwriting is Unlocking Mortgage Credit”
Smaller Down Payments
The average share of high loan-to-value purchase mortgages is at a 2-year high, and the average down payment for single-family homes, condos, & townhouses was at a low 14.8% in the first quarter. In 3 years, this has been the lowest rate to date.
Alt-A Makes a Comeback
The former alternative-A lender, Impac Mortgage, who managed to survive the financial crisis, is lowering guidelines pertaining to underwriting, in hopes of extending a higher quantity of credit to self-employed borrowers
Big Boys Funding Home Flippers
High profile investment companies are starting to competitively finance home buyers that sell homes and fix them up at a profit.
Marketplace Lenders Boost Small-Balance CRE Loans
An increasing amount of players among the emerging marketplace lending sector are specializing in under-served commercial real estate loan market that are small-balanced.
CMBS Originators Get More Competitive
Nonbank lenders as well as small banks are getting increasingly competitive as they are originating commercial mortgages with decreased credit quality, than those loans originated by larger banks.
Technology Drives Real Estate Crowdfunding
A $40 million capital raise that was just launched by Benworth Capital, helped raise money for a technology-based community funding platform for real estate, increasing the field of players that will be participating in the selective short-term loan market.
Mortgage Options, Inc. is a licensed mortgage broker NMLS 803458 SC DCA and NMLS 1183586 NC Commissioner of Banks