Getting a home loan is easier now than a year ago, according to the Zillow Mortgage Access Index.
Borrowers who might have only been eligible for Federal Housing Administration loans last year due to a low credit score or down payment are now eligible for conventional loans with private mortgage insurance, Zillow said.
The index revealed that mortgage credit was easiest to obtain in August 2004. However, it became marginally tighter over the next few years. Then, in May 2007, housing and mortgage availability began a multiyear plunge that resulted in home values depreciating more than 22% and credit tightening to historic lows.
However, access to mortgage credit today is roughly two-thirds back to 2002 precrisis levels, the Seattle-based analytic company said.
"Lenders are, in fact, opening their doors a bit wider, especially for borrowers with credit scores below 700," said Stan Humphries, chief economist at Zillow. "We're a long way from again letting credit get too loose, but we'll need to remain vigilant not to repeat the mistakes of the recent past."
