Home News New credit score models could mean more people now qualify for home loans

New credit score models could mean more people now qualify for home loans

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WEST PALM BEACH, FL — At a time when affordable housing is hard to find in South Florida, two new lender credit models help millions of Americans qualify for mortgages and other loans. could mean

April Wade told WPTV in May, “I feel like I’m basically forced to live in my car.

WPTV has covered South Florida’s housing crisis extensively through its “Priced Out of Paradise” series.

Katie Lister said of her car in August, “I’m really blessed to be able to sleep in it.”

Renters and prospective homebuyers are feeling the pinch. Rising housing costs are driving many people out of South Florida.

Now, more than 10 million people could be eligible for mortgages as lenders’ credit models are scheduled to change.

The Federal Housing Finance Agency said it would require mortgage lenders to incorporate credit scores from FICO and a new credit rating agency, VantageScore.

“Today, our credit report is a real-time snapshot,” said Paul Oster, founder of credit management firm Better Qualified.

Alex Hagan/WPTV

Paul Oster, founder of credit management firm Better Qualified, tells WPTV’s Consumer Research Reporter Jessica Bruno about new requirements to help more people qualify for a mortgage.

Oster said the situation is changing because these new credit score models will incorporate one-time rent and utility payments, cell phone payments, and more that weren’t previously included in a person’s credit score. He said that could change soon.

“I go back 24 months and look at my credit card balance and see what I’ve been doing in the last two years,” Oster said. We hope it will help those who haven’t done the report.”

But Oster said a few things need to happen before this new plan can come to fruition.

Special Section: “Price for Paradise”

“I hope A really works for the average consumer.Do government agencies really require lenders to use these scoring models?” Oster said.

Oster said even with mortgage rates at their highest level in 20 years, it will help many people finance their next home.

“There are millions of people who aren’t even on the FICO score radar,” Oster said. “They don’t use traditional bank accounts, so they don’t have credit scores, but they shouldn’t be discriminated against when it comes to buying a home.”

Oster told WPTV there is currently no deadline for the government to set requirements for lenders to use these new scoring models.

WPTV will follow this unfolding story.

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