Spring, TX -- (SBWIRE) -- 10/08/2015 -- A report released by the Urban Institute in December, 2014 indicates 43 percent of home loan applicants in American were denied by traditional lenders during 2013, up an estimated 3 percent from just a year earlier. Rejections are said to be based largely on credit score, household income and debt-to-income ratio. This uptick comes as no surprise to the staff of AMCAP Mortgage - North Houston who has watched this trend unfold for quite some time. In response to the mounting turn-down rate, spokesperson Gerry Nicodemus has launched the company's latest efforts to raise awareness regarding FHA loans.

Said Nicodemus, "Qualifying for a home loan through a conventional lending institution is a great deal more difficult than it once was, thanks to the market crash of 2009. Not only are these lenders holding potential borrowers to higher standards than before, but all those affected by economic decline are still struggling to recover financially. Their credit scores are suffering as a result. Thousands who once would've easily been eligible for a loan are being turned away empty handed. Many fail to realize the FHA can often help where others won't."

As opposed to the credit score of 720 or better required by traditional lenders, the FHA has been known to accept applicants with scores in the 580 range. Previously mentioned debt-to-income ratio requirements for a standard loan are generally 43 percent or less whereas the FHA weighs in at a slightly higher 50 percent. While the majority of mortgage providers insist on a down payment of at least 20 percent of the price of the home in question, FHA requirements typically range from 3.5 to 10 percent.

While proof of sufficient income is required prior to consideration for a mortgage loan, these less stringent guidelines than other lenders enable more anticipatory borrowers to qualify. Those with credit scores on the lower end of the spectrum may be expected to hold lower than average debt-to-income ratios. Additionally, down payments may be a product of gifts from friends or relatives rather than strictly earned income.

Concluded Nicodemus, "We've made it possible for a number of families who don't qualify for traditional loans to realize their dreams of owning a home. Our aim is to give hope to thousands more would-be homeowners by further spreading the word about this type of mortgage loan. Anyone interested may visit our website for more in-depth FHA information or to learn how to apply. We look forward to helping our community grow through this service."

About AMCAP Mortgage - NHB
A registered Mortgage Banking integrate of the Texas Department of Savings and Mortgage Lending, AMCAP Mortgage is dedicated to providing exemplary customer service throughout the loan process.