Are mortgage credit standards really too tight?

app denied stampEarlier this week, Geoff Williams, a reporter for U.S. New and World Report, asked me for my opinion about current credit standards set by mortgage lenders, and whether someone with less-than-stellar credit could actually get a loan to buy a home. Here’s what I told him:

There has been a false narrative circulating ever since the meltdown of 2008 – that even though interest rates are great, almost nobody can qualify, since the banks pick only the most squeaky-clean borrowers,” says Joe Parsons, a managing partner at PFS Funding, a mortgage lender in Dublin, California. “This is so far from the truth as to be almost ludicrous, except that it becomes a sort of self-fulfilling prophecy, where imperfect would-be buyers stay out of the market for fear of rejection.

This “false narrative” has been a sore point with me for years, since it inhibits so many people even from making the attempt to buy a home. I’m happy that Geoff took on this issue in a national magazine. Expect more articles on this topic from me in the coming months.

You can find Geoff’s story, “How to Get a Home Loan With Less-Than-Stellar Credit,” at

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