Homeownership out of reach for 1/3 of Americans; No better time to Rent2Buy

The reality of the economic turmoil of recent years means homes are more affordable now than they have been in the past. But despite lower home prices, banks have tightened their restrictions. Though mortgage rates are at historically low levels, it is harder than ever to get a loan.

Zillow.com analyzed over 25,000 loan requests on Zillow Mortgage Marketplace on top of credit score data from myFico.com in order to determine who is eligible for loans and who is getting the best rates. What they found is that the 47% of Americans with credit scores at or above 720 have access to the best interest rates and most expansive choice in loans. For the 29.3% of Americans with scores below 620, getting a mortgage is nearly impossible. According to zillow.com, even those who can offer a down payment of 15 to 25% will rarely be offered even one loan quote by lenders. For those with credit scores between 620 and 719, the APR (Annual Percentage Rate) decreases as the credit score increases.

What this means is that homeownership is out of reach for 1/3 of Americans. Over 100 million Americans cannot get a mortgage, cannot take out a loan, and cannot own their own home.

BUT homeownership doesn’t have to be out of reach. The option to rent to buy a home is becoming increasingly relevant, opening up the possibility of homeownership for people across the country for which homeownership wouldn’t otherwise be an option.

Owning a home is the American Dream, and Rent2Buy is allowing more and more Americans to achieve it.