Will bad mortgages cause the housing market to crash? The previous housing crash was caused in part by borrowers who had poor credit scores getting 100% loans and were allowed to buy numerous houses with poor credit scores. We discuss the loans since the last housing crash and how improved mortgage lending is.
In the last decade, very few home loans have been given out to people with credit scores under 620. This is a huge shift to keep the housing market stable and avoid speculation in the housing market.