No Credit = No Home

Here's an equation for you:

   25% have BELOW 600 Credit score
+ MINIMUM 620 Credit Score for mortgage
—————————————————————-
= A lot of homebuyers NOT buying homes

That fact, about the 25% under 600 credit score, is from a recent Chicago Sun Times article that went on to mention:

Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders.

Historically, just 15 percent of the 170 million consumers with active credit accounts, or 25.5 million people, fell below 599, according to data posted on Myfico.com.

My favorite quote from the article is from a mortgage broker who sounds like he is right out of Central Casting:

"I don't get paid for loan applications, I get paid for closings," said Ritch Workman, a Melbourne, Fla., mortgage broker. "I have plenty of business, but I'm struggling to stay open."