SAVI Reports - Page 24

closed loan prior to the recession (Figure 12). More recently, the average credit score for a denied loan has dropped considerably, but the average score for a closed loan has remained relatively constant. programs that will help rehabilitate their credit and/or work with responsible private or nonprofit lenders to secure conventional financing. These programs may also provide homeownership counseling and financial education courses that help prospective homeowners save resources to put toward a down payment on a home of their choice. Overcoming credit issues and providing a framework to help secure resources for a down payment can position some prospective homeowners, who otherwise would not be able to enter homeownership, purchase their own home. This result suggests families with poor credit have either been able to rehabilitate their credit and are closing on mortgages or that they are less likely to attempt to pursue mortgage financing at all. To the degree that it is the latter, these families will continue to place increased demand on available rental units. In these situations, prospective homeowners may be able to obtain financing by participating in Figure 12. Average Credit Scores for Closed and Denied Loan 760 740 720 700 680 660 640 620 600 580 2006 2007 2008 2009 2010 Closed Loans 2011 2012 2013 2014 2015 Denied Loans Source: Ellie Mae, Origination Insight Report (2016); HMDA 20