According to NYTimes.com, "The once booming market for home loans to people with weak credit — known as subprime mortgages and made largely to minorities, the poor and first-time buyers stretching to afford a home — is coming under greater pressure. The evidence can be seen in rising default rates, increasingly strained finances at mortgage lenders and growing doubts among investors."
"LOVE the neighborhood, hate the house. That is a common enough complaint from both current homeowners and prospective homeowners.
Lenders have an increasingly attractive alternative for people in this situation: renovation loans. With these, a borrower who wants to move into an existing home need not compromise on quality, and the homeowner who has outgrown the house but does not want (or cannot afford) to move can upgrade more economically."
"WHEN most people consider the pain of moving, they think of the actual move: cardboard mountains, insubordinate packing tape, back strain and bewildered children. But for many, the stress is nothing compared with the torture of living inside the place they are selling. Tethered indefinitely, they must endure invasion (and banishment) at an hour’s notice, countless rejections by strangers, scrutiny of voyeuristic neighbors and, more frequently these days, the erosion of their own expectations."
"Of all the confusing and expensive things about buying a house or refinancing a mortgage -- and there are plenty -- title insurance just might take the prize. Title insurance prices -- and profits -- have unfairly soared because they're based on house prices, which skyrocketed from 2000 to 2005."
Read the article "What's In Your Score?" on FICO.org to understand the "five main categories of information that FICO scores evaluate, along with their general level of importance. Within these categories is a complete list of the information that goes into a FICO score."
Washington Post Staff Writer Dina Elboghdady says,
"If you're thinking of buying a house, there's one number that's more important than all the others. It's not your salary. It's not your savings account balance. It's not even the price of the house. It's your credit score."