After the housing crisis, it became very hard to get a mortgage. The pendulum swung so far that even former Federal Reserve Chairman Ben Bernanke was turned down for a home loan! The good news is that the pendulum is finally starting to swing the other way. Why? Competition.
Fannie Mae reports that lenders are easing credit standards to gain more customers. Plus, Fannie Mae is helping too. The financial giant, which helps set the underwriting standards for mortgages that are sold to investors, raised its total debt-to income ratio threshold. This means that more borrowers will qualify for home loans. This could be very good news for Millennials that have student loans. Student debt has been keeping many out of the housing market, but this move might help some Millennials jump in.