Only Two-thirds Of Consumers Likely To Qualify For Mortgage, Report Shows

New data reveals a large credit score gap in the U.S. that affects Americans' eligibility for mortgage loans. Real estate website Zillow.com reports the disparity will likely exclude nearly one-third of prospective homebuyers from homeownership.

Data from a survey of nearly 25,000 loan quotes and purchase requests shows most consumers with credit scores of 620 or below who applied for 30-year fixed loans were unlikely to receive a single quote. This includes prospective homebuyers who offered a sizable down payment between 15 and 20 percent.

"Four years ago, in the era of easy-to-get subprime loans, many borrowers with low scores did buy homes, which in turn helped contribute to a housing bubble," Zillow chief economist Stan Humphries said. "Today's tighter credit is a predictable response by banks after the foreclosure crisis, but also keeps a cap on housing demand, which is important for the greater housing market recovery."

Economic recovery is largely reliant on improvements in the real estate market, a realization that sparked a number of debt relief programs for potential homebuyers and struggling homeowners. Many consumers who are unable to qualify for loans have sought financing through the Federal Housing Administration.