Qualifying for a mortgage is still generally difficult, although becoming easier, according to the January 2015 REALTORS® Confidence Index Survey. Some respondents in states such as TX, CA, and NY reported that more people are qualifying for credit. About 4 percent of REALTOR® respondents reported a purchase by a buyer with credit score of less than 620, up from about 1-2 percent in 2012-2014. In a normal market, the share of credit scores below 620 would be closer to 5 percent. Almost half of REALTORS® providing transaction credit score information reported FICO credit scores of 740 and above; in 2013, the share was hovering at about 60 percent.
Potential buyers facing credit limitations might want to consider a mortgage origination by community banks and credit unions.