Today, I am talking about JPMorgan Chase's change in morgage borrowing standards. In other words, the criteria you must meet to be able to take out a loan to buy a house. Americans now need a credit score of over 700 AND at least 20% of the total purchase price as a down-payment in order to qualify for a home loan. Gone are the days of 3%, 5%, or 10% down and private mortgage insurance. For reference, the average American's credit score is 682, meaning most Americans will not meet these new lending criteria. Additionally, with the 17 million Americans filing for unemployment in the last month, banks will lend to even less applicants - as they require 2 years of employment history as well as current employment.
How will this impact the economy and the housing market? Watch the video to find out my thoughts!
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