If you’ve been hesitant to start your homebuying journey because you thought qualifying for a mortgage would be too difficult, you may want to take another look. Lending standards have begun to ease slightly—making it more accessible for well-qualified buyers to get approved—while still maintaining the safeguards that protect the market.

A SHIFT TOWARD GREATER SUCCESS
In an effort to stimulate housing activity, lenders are slowly loosening some of their credit requirements. That means buyers with lower credit scores or smaller down payments are beginning to see more options open up. And for those who may have been on the sidelines due to strict lending criteria, this shift could be the green light they’ve been waiting for.

It’s important to note, though, that this is not a repeat of the risky lending behavior that contributed to the 2008 housing crash. Today’s standards remain significantly more cautious and responsible, even with this recent shift.

WHAT THE DATA TELLS US
The Mortgage Bankers Association tracks mortgage availability through its Mortgage Credit Availability Index (MCAI), which measures how easy or difficult it is to get a loan.

In May, the index reached its highest level since August 2022—signaling that lenders are beginning to relax underwriting standards and expand access to financing. As the National Association of Mortgage Underwriters explains:

“Mortgage credit availability surged in May, reaching its highest level since August 2022. The uptick signals that lenders are increasingly willing to loosen underwriting standards, providing borrowers with greater access to financing options . . .”

NO NEED TO WORRY ABOUT 2008

Understandably, some might wonder whether this trend is cause for concern. After all, loose credit standards were a major contributor to the 2008 housing crisis. But here’s the key difference: even with this recent increase, lending standards today remain much more conservative than they were back then. Historical data shows that current credit availability is still far below pre-crisis levels, meaning the industry is being mindful not to repeat past mistakes. Brett Hively, SVP of Mortgage, Finance, and Strategy at Ameris Bancorp, summed it up well: “This uptick is opening the door for many borrowers to move forward with a home purchase or a refinance program.”

WHAT THIS MEANS FOR YOU
If you’ve been putting off buying a home because you thought a mortgage approval was out of reach, now may be the perfect time to reconsider. With more flexibility in lending standards and strong protections still in place, the path to homeownership is becoming more attainable for more buyers.

BOTTOM LINE
Don’t count yourself out. I can connect you with a trusted lender I personally recommend to help you explore what’s possible in today’s market.