A new study by the Harvard Joint Center for Housing Studies revealed that lender unwillingness to issue loans remains the biggest chuckhole on the road to housing recovery.
Some homebuyers — many of them low-equity members of Gen X and Gen Y — can’t qualify for a loan. Many lenders are requiring higher credit scores than what was needed to qualify for a loan just a few years ago. Plus, some banks are also requiring potential borrowers to come up with larger down payments. The result has left a greater number of homebuyers than expected on the sidelines unable to purchase a home.