Monday, August 31, 2009

College grads feel at home in market

- Attractive home prices and the first-time homebuyer tax credit have many recent college grads considering becoming homeowners. Limited work and credit histories can make getting a loan more difficult. In some cases, however, lenders are willing to consider education and internships as work history. "Internships are helpful because it shows that you are employable and that the income from their employer would be stable," said Les Worton, a veteran mortgage broker with North Suburban Mortgage, a division of Universal Lending. Credit history can be a challenge, however, and recent grads are likely to find it an increasingly significant roadblock. In the current market, mortgage-loan services are demanding a 620 credit score or better for FHA and VA loans. While numerous variables are taken into consideration, an individual's credit and income situation take greatest precedence.