Need a mortgage but worried about your less-than-stellar credit score? A recent survey by loanDepot found that 56% of potential homebuyers are delaying their purchase plans because they were worried lenders would reject them. If this sounds like you, read on – you may be able to buy a home after all! A positive side-effect of the increase in mortgage rates is that with fewer people are applying for refinancing, lenders are now turning their attention to people with lower credit scores in order to build up their mortgage businesses.This is great news for people with below-average credit scores or potential buyers who don’t have a 20% down payment because even though mortgage rates have gone up about 1% since last year, they are still close to historically low rates. The benchmark loan for a 30-year mortgage at the beginning of April was 4.41%, a mere 1.1% higher than the all-time low of 3.31% (November 2012).Now that the refinancing boom is past, lenders are reconsidering their lending guidelines AND are promising better service in an effort to court new borrowers. According to Daniel Jacobs at American Financial Network, a conventional mortgage from Freddie Mac or Fannie Mae might require a FICO score of 620 (instead of the 640 or 660 you would have needed last year). A loan from the Federal Housing Administration may only require a FICO score of 580.So if you’ve been waiting for the right time to start looking for a new home, or if you’ve already found your dream home but didn’t think you’d be able to buy it, act now… you can even search local listings right from my website! Please feel free to contact me for additional information about the housing market in the Greater San Jose area, or to learn more about the buying process.