The mortgage loans are really low and people are really willing to get loans from the market but there is a prick. The credit crunch in the American market has made the circumstances difficult for the Americans. It is not an easy take to become qualified for a loan.

During the earlier period, many Americans got housing loans during the loan boom. Right now, only well qualified borrowers are given loans and the remaining people are disqualified.

The statistical reports from Federal Reserve claim that around one-fourth of the people were disqualified for the loan.

"Good borrowers with one or two blemishes on their credit are being denied credit", said Lawrence Yun, Chief Economist for the National Association of Realtors.

There are many people in the market are not applying for loans because they think their loan request would be turned down.

Alan Rosenbaum, CEO of GuardHill Financial claimed that it has become really difficult for people to get qualified for the loan. Only well qualified people are given loan after proper verification of their documents.

The average credit score rose to 760 from the earlier 720. For FHA loans, it was found that the credit score has turned to 700 from the earlier 660.