FHA loans — you know, those loans that, when push comes to shove, we as citizens get to insure — have risen to almost a quarter of all home loans from 3% just a few years ago. Why? Because apparently they don’t care who they loan to:
FHA also has tightened lending standards, requiring a 10% down payment for those with credit scores below 500.
When 10% down payment for a credit score below 500 is an indication of tightened standards, you just have to laugh. Or cry. 
Someone with a score in that range has shown an obvious lack of financial acumen, and has no business with a credit card with a $1,000 limit much less a home loan of potential $100s of thousands. Until one has shown at least the modicum of restraint — and a sub-500 credit score is just about the exact opposite — the dream of home ownership should remain precisely that: a dream.
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This article has a very good point, but the credit score system is to blaim not the people effected by it.
This is interesting. I think the credit card scores are pretty demanding. People suffer due to bad credit scores and they lack of enjoying even the basic necessities because of that.
.-= mark@need bad credit loans´s last blog ..Personal Loan Contract =-.
A bad credit score can affect your life in so many negative ways! I keep a pretty close eye on mine.
I have to agree with your post. For those who cannot manage a credit card well enough to have a decent credit score a home loan is the last thing they need.
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The whole credit scoring system needs to be revamped. Ever try to have false items removed from your report? It takes forever and it seems the agencies have no desire to help you.
.-= Charles@Las Vegas Real Estate´s last blog ..First Time Home Buyer Tax Credit Extended =-.
I enjoyed reading your post. I could not agree with you more. I think that it is hard to be a lender and choose between making a sale and denying loans.
Bad Credit Info
.-= Mike Ryan´s last blog ..Save, Hard To Do Or Is It? =-.
The credit system is probably flawed to some extent but the whole banking system/government regulatory practices are too….
sometimes people need a chance to rebuild their credit score after a traumatic event. Not everyone with a low score is a complete financial dunce.
I think this is an interesting topic to discuss and truly speaking that i really like it and i will implement some of your points. Anyways keep it up and keep continue with your valuable thoughts.
.-= Tiara@Car loan calculator´s last blog ..Car payment by the loan lenders =-.
nice blog , i feel beter to read your blog you get more info. visit over website
I know many guys who lost everything because of bad credit score but I think its not their problem. Your article is good and think it can save many.
The entire credit system is just a way to make money off of people. I understand why it has a purpose, but they money that is made off interest they charge people is ridiculous.
Bad credit makes rich to poor.. I know a couple of guys who now lives on our garage..poor guys..I pity them.
Its very useful info, I will keep this article in my mind.
thanks for sharing useful stuffs.
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