Lenders Are Opening Doors: What It Means for Buyers in 2025

Mortgage Approvals Are Getting Easier – Here’s What That Means for You

If you’ve been sitting on the sidelines because you thought getting approved for a mortgage would be too tough — there’s good news.

Lending standards are still strong, but qualifying is getting a little easier.

That’s opening doors for more buyers to finally make their move — maybe even you.

More Buyers Are Getting Approved

In an effort to stimulate the housing market, lenders are now offering financing to a wider pool of qualified buyers. That includes people with lower credit scores or smaller down payments than what may have been accepted even a year ago.

But don’t worry — we’re not heading back to the risky lending environment of 2008. Lenders are easing standards within reason. They’re focused on expanding access responsibly — not recklessly.

The Mortgage Credit Index Is Rising

The Mortgage Bankers Association (MBA) tracks the Mortgage Credit Availability Index (MCAI), which tells us how easy or difficult it is to get a loan.

In May, that index hit its highest point in nearly three years. Translation: more buyers are qualifying for mortgages, and more options are becoming available.

As the National Association of Mortgage Underwriters explains:

“Mortgage credit availability surged in May, reaching its highest level since August 2022. The uptick signals that lenders are increasingly willing to loosen underwriting standards, providing borrowers with greater access to financing options . . .”

This Isn’t 2008 All Over Again

Let’s address the elephant in the room. Yes, risky lending helped fuel the 2008 crash — but this is different. While lending is loosening, we’re still operating well below the threshold that triggered the last housing crisis.

In fact, data from the MCAI going back to 2004 shows we’re nowhere near those pre-crash levels. Lenders today are focused on helping well-qualified buyers access homeownership, not handing out loans without guardrails.

As Brett Hively, SVP of Mortgage, Finance, and Strategy at Ameris Bancorp puts it:

“This uptick is opening the door for many borrowers to move forward with a home purchase or a refinance program.”

Bottom Line

If you thought getting a mortgage would be too hard, now might be your chance to find out otherwise. Lending is opening up just enough to make homeownership more attainable — without sacrificing the stability of the market.

Ready to find out if you qualify? Start by connecting with a trusted lender to explore your options.